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Tag: 700MHz Spectrum

  • T-Mobile to Buy Verizon Spectrum For $2.3 Billion

    T-Mobile to Buy Verizon Spectrum For $2.3 Billion

    Late last week, T-Mobile CEO John Legere criticized AT&T’s announcement that it would pay up to $450 to T-Mobile subscribers who switch to AT&T. Calling the move “desperate,” Legere said the move was a clear sign that T-Mobile had made AT&T “uncomfortable.” He then teased that T-Mobile would have more industry-changing news coming out of this week’s Consumer Electronics Show (CES).

    T-Mobile today did release an announcement, though it’s not some new exciting service or pricing initiative. The company will be paying a little over $2.36 billion for 700MHz A-Block spectrum from Verizon. In addition to the cash, T-Mobile will hand over nearly $1 billion worth of its AWS and PCS spectrum to Verizon.

    According to T-Mobile, the deal will give the company a stake in low-band spectrum in nine of the top ten U.S. cellular markets. Around 150 million people are covered by the spectrum purchased from Verizon.

    “This is a great opportunity to secure low-band spectrum in many of the top markets in America,” said Legere. “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.”

    Verizon closed a similar spectrum deal with AT&T back in September. Under the terms of that deal, AT&T paid $1.9 billion for 39 700MHz B-Block spectrum lecences covering 42 million Americans in 18 states.

  • Verizon, AT&T Complete $1.9 Billion Spectrum Transaction

    Verizon, AT&T Complete $1.9 Billion Spectrum Transaction

    AT&T and Verizon this week announced that a $1.9 billion spectrum deal between the companies has been finalized. AT&T paid the billions to Verizon for 39 lower 700MHz B Block spectrum licenses. The deal between the largest mobile providers in the U.S. was announced back in January, and just this month was approved by the U.S. Federal Communications Commission (FCC).

    According to AT&T, the sold spectrum covers 42 million Americans in 18 states (California, Colorado, Florida, Idaho, Illinois, Louisiana, Montana, New Mexico, New York, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, Virginia, Washington and Wyoming). AT&T intends to use the spectrum to expand its 4G LTE network throughout the territories the spectrum covers.

    As part of the deal, AT&T also transferred several AWS-1 licenses to Verizon in key markets such as Los Angeles, California; Fresno, California; and Portland, Oregon. Verizon states that it will use its new AWS licenses to expand the capacity of its 4G LTE network in those markets

    In addition to the large AT&T sale, Verizon has also sold several of its 700MHz spectrum licenses to six small regional mobile providers and one minority-owned firm. Verizon is selling off this spectrum as part of a deal with U.S. regulators that would allow the company to acquire spectrum from U.S. cable companies, including Time Warner and Comcast.

  • Verizon Wireless Sells Spectrum to AT&T For $1.9 billion

    Verizon Wireless Sells Spectrum to AT&T For $1.9 billion

    According to a regulatory filing with the U.S. Securities and Exchange Commission, AT&T has agreed to acquire spectrum licenses from Verizon Wireless for $1.9 billion. The 700 MHz Block B licenses will cover 42 million people in California, Colorado, Florida, Idaho, Illinois, Louisiana, Montana, New Mexico, New York, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, Virginia, Washington and Wyoming.

    The deal also includes AT&T handing over to Verizon Advanced Wireless Services (AWS) spectrum licenses in markets such as Phoenix, Los Angeles, Fresno, and Portland, Oregon.

    The transaction is subject to regulatory approval by the U.S. Federal Communications Commission (FCC) and the U.S. Department of Justice (DOJ), but AT&T expects the transaction to be completed sometime in the second half of 2013.

    The transaction is part of a 700 MHz spectrum sale that Verizon announced last year. The sale is part of an agreement made with U.S. regulators so that Verizon could acquire spectrum from cable companies such as Comcast and Time Warner.

    This spectrum acquisition comes just after AT&T announced this week that it will buy Alltel for $780 million. Alltel is a smaller wireless carrier that serves around 585,000 subscribers in the rural areas of Georgia, North Carolina, South Carolina, Illinois, Ohio, and Idaho. AT&T announced last year that its goal is to provide 300 million Americans with access to its 4G LTE network by 2014.