Verizon Buys More US Radio Spectrum

Verizon Wireless is to purchase 50 PCS licenses and related network assets from Northcoast Communications, for approximately US$750 million in cash. The licenses cover large portions of the East Coast and Midwest, including such major markets as New York, Boston, Minneapolis, MN, Columbus, OH, Providence, RI, Rochester, NY and Hartford, CT.

Of the gross proceeds, approximately US$60 million will be used to retire the Northcoast FCC related debt. The balance of the proceeds will be distributed to Northcoast's partners, which are comprised of Northcoast PCS and a subsidiary of Cablevision Systems Corporation. Cablevision plans to use its share, approximately US$635 million, to pay down bank debt.

Verizon Wireless said it would fund the purchase drawing upon an existing inter-company loan facility with Verizon Communications. Additionally, network investment for increased capacity has been factored into the company's near-term capital program.

Total population (POPS) served by the licenses is approximately 47.4 million and includes 10 MHz in each of the 50 U.S. markets, in the D, E, and F blocks of the 1900 MHz frequency band. They cover a portion of Ohio and New York State, including New York City; the states of Connecticut, Rhode Island and Massachusetts; portions of Maine; Minnesota, including Minneapolis; New Hampshire; Vermont; Pennsylvania; West Virginia and Kentucky.

Also included in the transaction are more than 300 cell site locations that are available for the company to build out its network."

Posted to the site on 27th December 2002