T-Mobile US struck an agreement to issue and sell senior notes worth $2 billion to majority shareholder Deutsche Telekom, giving it a cash injection ahead of this month’s planned incentive auction.

The notes, which will mature in 2021, can be issued by no later than 7 December this year, according to an SEC filing, with T-Mobile US “required to use the proceeds from the sale for acquisitions of low band spectrum”, or refinancing of debt and general corporate purposes.

T-Mobile US reportedly said it could spend up to $10 billion in the so called “reverse auction”, kicking off on 29 March, which will see the country’s broadcasters sell off spectrum in the low band 600MHz.

AT&T, Verizon and Comcast, among others, are also expected to spend big in the auction, while T-Mobile US’ closest competitor Sprint, internet giant Google and cableco Charter Communications have said they will not be involved.

Analysts told Mobile World Live last month the auction could raise up to $30 billion in total.

Deutsche Telekom owns a 66 per cent stake in T-Mobile US, and a spokesman for the company said the agreement was sealed to give the company financial flexibility, reports Reuters.