Verizon nears spectrum deal with T-Mobile

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Tuesday, 17 December 2013

Verizon nears spectrum deal with T-Mobile



According to Bloomberg Verizon Wireless has almost reached an agreement with T-Mobile US to sell unused airwaves in exchange for cash and spectrum in cities where more capacity is needed. The sale with involve the 700Mhz spectrum to be announced next week after all the details are settled. Right now T-Mobile is the fourth largest carrier in the U.S. behind Verizon, AT&T and Sprint, but the frequency gained could help them serve another 150 million potential POPs. Estimates from Walt Piecyk, an analyst at BTIG LLC indicate Verizon will ask around $3 billion for the spectrum, which was part of the A block originally sold in a 2008 government auction for about $2.6 billion. After the details are worked out the final approval will be decided by the Federal Communications Commission on the low band frequency ideal for rural deployment and condensed areas with a lot of obstructions.

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