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 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?
"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg
SoftBank in Talks with Financial Institutions for T-Mobile Deal
December 26, 2013, 11:42 AM
Apple Adds New Password Protection for Third Party iCloud Apps
September 17, 2014, 8:50 PM
Facebook Tests Moments App, Aims to Keep Your Private Memories Private
September 17, 2014, 5:46 PM
Russian Hackers Compile List of 10+ Million Stolen Gmail, Yandex, Mailru
September 11, 2014, 11:41 AM
House Minority Leader Pelosi Criticizes FCC's "Fast-Lane" Net Neutrality Plan
September 9, 2014, 4:15 PM
Smarter Than Siri? Cortana Adds Game NFL Game Winner Prediction
September 3, 2014, 4:12 PM
Apple Says Nude Celebrity Photo Dump Wasn’t Result of iCloud, Find My iPhone Breach
September 2, 2014, 3:26 PM
Most Popular Articles
Quick Note: Buy an Xbox One Sept 7-13, Get a Free Game
September 4, 2014, 10:42 AM
Apple Announces Its Smartwatch: The $349 Apple Watch
September 9, 2014, 2:09 PM
Dell Announces "World's Thinnest" Tablet: The Venue 8 7000 Series
September 11, 2014, 8:51 AM
Windows 9's Latest Metro Start Menu Leaks, German Site Accidentally Outs Leaker
September 11, 2014, 8:36 PM
T-Mobile Launches Un-carrier 7.0, Beefs Up Wi-Fi Calling
September 11, 2014, 2:56 PM
Latest Blog Posts
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information