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Verizon is receiving certain AWS and PCS spectrum licenses in exchange for the A-Block spectrum

T-Mobile and Verizon have swapped airwaves in an effort to gain spectrum where the two U.S. carriers need it most. T-Mobile paid Verizon $2.365 billion USD in cash for certain 700 MHz A-Block spectrum licenses. In exchange, Verizon is receiving certain AWS and PCS spectrum licenses from T-Mobile worth approximately $950 million USD. 
 
On T-Mobile's end, the new licenses will fill in the gaps in its network coverage. More specifically, it will provide T-Mobile with low-band spectrum in nine of the top 10 markets across the U.S.
 
“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. We will continue to find ways to advance our customers’ network experience just as our bold Un-carrier moves have shaken up the wireless industry to benefit consumers.”
 
This could make T-Mobile look even more appealing in a takeover deal. Just last month, it was reported that SoftBank Corp. -- which already acquired U.S. carrier Sprint last summer for $21.6 billion USD -- is in talks with banks like Credit Suisse Group AG, Mizuho Bank Ltd, Goldman Sachs Group Inc and Deutsche Bank AG in an effort to acquire a majority stake in T-Mobile. The deal has been valued at around $20 billion.
 
Some reports say T-Mobile could continue filling in its coverage gaps by looking to other owners of A-block spectrum, such as U.S. Cellular Corp. But nothing has been confirmed in that area yet. 
 
T-Mobile raised approximately $4 billion USD last year in an effort to buy new spectrum licenses and expand its network. 
 
As for Verizon, its new AWS and PCS spectrum licenses from T-Mobile will help relieve wireless network congestion in cities with heavy traffic (which affects performance). These key cities are Los Angeles, San Francisco, Dallas, Detroit and Atlanta. 
 
The deal is expected to close by mid-2014.

Source: Business Wire



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Great news for TMobile.
By elkinm on 1/6/2014 4:17:00 PM , Rating: 2
Having moved from Verizon to TMobile, I find that in the Chicago area TMobile is far more reliable than VZ ever was. However VZ does have better coverage away from major cities.
I wonder if this will help TMobile in these areas, and if so than this is simply fantastic news for me and any current or future TMobile customers. I wonder how long until we can see the deal in effect.




RE: Great news for TMobile.
By Rukkian on 1/6/2014 4:25:29 PM , Rating: 2
I would love it if it would help in areas outside of cities, as the coverage in Iowa is pretty much edge/partner only outside of Des Moines. Unfortunately, it seems this is only in big markets (21 of the 30 biggest markets). It seems it will help with penetration inside buildings around you and other big cities, but does not seem to help at all outside the metros. Where this might help, is that their handsets would now be capable of the 700mhz bands, and they may be able to get roaming agreements, or buy spectrum from other regional carriers to cover other areas, where right now, their current handsets would not even allow it.

As far as I know, the lower frequencies do not travel as far, but penetrate structures better. Higher frequencies typically go longer distances, but will be cut off much easier trying to get through structures.

I really like what T-Mob is doing, and would love it if they got better coverage.


RE: Great news for TMobile.
By extide on 1/6/2014 7:28:23 PM , Rating: 2
Almost right. Lower frequencies both penetrate better and go farther, while higher penetrates worse and doesn't go as far.


RE: Great news for TMobile.
By Mathos on 1/7/2014 12:26:11 PM , Rating: 2
Lower frequencies Carry farther, and penetrate structures more easily.

Higher frequencies generally have a higher data throughput though. Kind of a trade off.


RE: Great news for TMobile.
By sorry dog on 1/7/2014 2:11:44 PM , Rating: 2
Yup.

For 1900 spectrum more towers may be required, but that is probably less of a problem for Verizon. I'm guessing their network of tower leases is much stronger than Tmob's.

I wonder how much of the ATT merger cash Tmob has left?


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