T-Mobile Pays Verizon Nearly $2.4 Billion USD for A-Block Spectrum
January 6, 2014 11:11 AM
comment(s) - last by
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
. 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.
This article is over a month old, voting and posting comments is disabled
RE: Great news for TMobile.
1/7/2014 12:26:11 PM
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.
1/7/2014 2:11:44 PM
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?
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
SoftBank in Talks with Financial Institutions for T-Mobile Deal
December 26, 2013, 11:42 AM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Most Popular Articles
2 NEW PlayStation 4 Models - Unveiling September 7th
August 23, 2016, 6:23 AM
iPhones May Get Curved Screens Next Year
August 24, 2016, 6:45 AM
5 Easy Ways to Lower Blood Pressure By Monique C. Bethell, Ph.D.
August 25, 2016, 8:00 AM
Say Goodbye to Data Plans - Sprint and T-Mobile offer Unlimited Data
August 22, 2016, 6:12 AM
Drones at the Airport
August 26, 2016, 5:00 AM
Latest Blog Posts
First Self-Driving Car debut on the streets of Singapore
Aug 28, 2016, 4:10 PM
Coming Soon - Drones and Airports
Aug 24, 2016, 12:40 PM
SolarCity’s Gigafactory: A Milesone in Emerging Technology by Lily Emamian - 15 August 2016
Aug 15, 2016, 6:30 AM
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information