T-Mobile’s planned 3G build out scheduled for this year is on hold because the federal government is still using the portions of spectrum that T-Mobile USA won in last year’s AWS auction. T-Mobile spent $4.2 billion to acquire 120 licenses in the 1700 MHz band, and reportedly offered the federal government an additional $50 million to move off of that spectrum sooner rather than later. Commerce Secretary Carlos Gutierrez noted that law enforcement and homeland security agencies are using that spectrum for mobile surveillance devices and relocating them to other spectrum has been problematic. T-Mobile is the only one of the four major wireless network operators not offering 3G services in the U.S., which it needs in order to remain competitive in the market.