T-Mobile USA Pays $3.3 Billion for Verizon Wireless Radio Spectrum
Published on: 6th Jan 2014
Note -- this news article is more than a year old.
T Mobile USA has announced that it is paying a total of USD3.315 billion for a block of radio spectrum from Verizon Wireless.
Under the terms of the deal, T-Mobile USA is paying USD2.365 billion in cash for certain 700 MHz A-Block spectrum licenses from Verizon Wireless. It will also transfer to Verizon Wireless some of its own radio spectrum, estimated to be worth around USD950 million.
The transactions, combined with T-Mobile's existing A-Block holdings in Boston, will result in T-Mobile having low-band spectrum in 9 of the top 10 and 21 of the top 30 markets across the United States.
"This is a great opportunity to secure low-band spectrum in many of the top markets in America," said John Legere, President and CEO of T-Mobile. "These transactions represent our biggest move yet in a series of initiatives that are rapidly expanding our already lightning fast network and improving its performance across the country."
Low-band spectrum substantially improves in-building coverage as well as coverage in rural areas. It also travels greater distances than high-band spectrum and therefore is a more efficient way to provide coverage at the edge of cities and in less densely populated areas. Combined with its existing Boston A-Block holdings, T-Mobile will have low-band spectrum covering approximately 158 million people.
T-Mobile anticipates rolling out service and compatible handsets on this A-Block spectrum towards the end of this year.
Also, as part of the transaction, the two companies will realign spectrum blocks in certain markets, primarily in northern California and the Atlanta area.
The agreements are subject to approval by the Federal Communications Commission and the Department of Justice, and other customary closing conditions.