Light Reading
The 'uncarrier' will use the spectrum to improve its indoor and rural coverage and bolster its position in the low-band spectrum.

T-Mobile Spends $2.4B on Verizon Spectrum

Sarah Reedy
1/6/2014
50%
50%

T-Mobile has agreed to purchase 15 lower 700MHz A Block licenses from Verizon Wireless for $2.365 billion in cash, and plans to use the spectrum to improve its coverage and better compete with its larger rivals. (See Report: T-Mobile Nears Verizon Spectrum Deal.)

The deal, announced Monday morning, will also see Verizon Wireless transfer eight additional lower 700MHz A Block licenses worth $950 million to T-Mobile US Inc. in exchange for its various AWS and PCS licenses in Los Angeles, San Francisco, Dallas, Atlanta, Detroit, and other major US markets.

Verizon will gain AWS spectrum in 19 markets covering 34 million PoPs and PCS spectrum in eight markets reaching 21 million PoPs, while T-Mobile gets low-band spectrum in 21 of the top 30 markets across the US. The "uncarrier" says it now reaches 158 million people with low-band spectrum across the US.

The spectrum deal is subject to Federal Communications Commission (FCC) review, but the companies expect it to close in the first half of the year. T-Mobile says it will roll out service and compatible handsets as soon as the fourth quarter.

Why this matters
This move marks the completion of Verizon's spectrum license sale, which it began in May 2012. T-Mobile, along with AT&T Inc. (NYSE: T), is one of nine carriers that have purchased spectrum from Big Red through this process. AT&T committed to supporting band 12 in the lower 700MHz in September when the wireless operator agreed to support it in its devices and work through any interference issues that may arise between bands 17 and 12. (See AT&T Closes $1.9B Verizon Spectrum Buy and AT&T Strikes $1.9B Spectrum Deal With Verizon.)

The purchase is significant for T-Mobile as it looks to catch up with AT&T and Verizon's low-band spectrum holdings, which are important for in-building coverage and extending coverage to rural areas. According to T-Mobile COO Jim Alling's recent comments, this deal could just be the first of many for the carrier.

Related posts:

— Sarah Reedy, Senior Editor, Light Reading

(14)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 2   >   >>
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/7/2014 | 9:30:04 AM
Re: More to come
Right, but as Mordy pointed out, with deals like this, there are increasingly fewer reasons to not switch to T-Mobile.

Btw, were you there last night to witness Legere getting kicked out of AT&T's party at CES? Sounded pretty amazing.
DanJones
50%
50%
DanJones,
User Rank: Blogger
1/6/2014 | 7:13:54 PM
Re: More to come
I think Verizon is pretty happy with its spectrum position now though.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/6/2014 | 7:10:46 PM
Re: More to come
Yeah, definitely helps their cause with Sprint. They're becoming a formidable potential competitor to AT&T and Verizon.
DanJones
50%
50%
DanJones,
User Rank: Blogger
1/6/2014 | 6:56:13 PM
Re: More to come
Yeah, they are hungry for low-band now. Maybe to try and give a competitive edge/lever with Sprint?
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/6/2014 | 12:22:44 PM
Re: conference call NOW
Hmm I'm not sure. I was surprised he said there are devices out already, but he didn't specify if they are handsets.
MordyK
50%
50%
MordyK,
User Rank: Light Sabre
1/6/2014 | 11:52:17 AM
Re: conference call NOW
Curious if AT&T's HTC one is one of them.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/6/2014 | 11:30:57 AM
Re: More to come
Carter says, "We are extremely interested in a nationwide footprint in the low band to support future growth in our company. #1, we'll be extremely disciplined in how we approach completing that nationwide footprint, and #2, there are multiple paths to complete that footprint."
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/6/2014 | 11:25:45 AM
More to come
This is definitely just one of many spectrum acquisitions T-Mobile has planned. Ray said the carrier is still very focused on future auctions, and "it's still a priority to get new low-band spectrum."
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/6/2014 | 11:25:01 AM
Re: conference call NOW
Ray says: 

First devices compatible with A-block already exist... Keen to partner with AT&T and others to grow the handset ecosystem... Initial devices supporting A-Block and T-Mobile at the end of the year... AT&T is working on adding compatible devices to its portfolio to extend the ecosystem... T-Mobile has a history of deploying new bands and techs quickly. 
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/6/2014 | 11:20:58 AM
Re: conference call NOW
They say new compatible devices coming in Q4.

CTO Neville Ray now saying the low-band spectrum gives it four-times better coverage in rural areas, and the indoor signal is 2x better than mid-band and even greater than high-band.
Page 1 / 2   >   >>
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Huawei Video Resource Center
Interview With Rick Talbot, Principal Analyst, Current Analysis

10|31|14   |   2:12   |   (0) comments


At the NFV Open Cloud Forum 2014, Rick Talbot shared his positive feedback about the holistic and open approach that Huawei adopts for SDN and NFV. He also found the open sharing at the event valuable as it features different perspectives from Huawei experts, telecom operators, industry analysts as well as security experts.
LRTV Huawei Video Resource Center
Interview With David Snow, Principal Analyst, Current Analysis

10|31|14   |   2:24   |   (0) comments


David Snow talked about his understanding of Huawei and its SoftCOM strategy at the NFV Open Cloud Forum 2014, saying that Huawei's wide approach combining IT and CT expertise, introducing big data and analytics into solutions and contributing to the OpenStack community particularly resonate with him and make the company stand out in the industry.
LRTV Huawei Video Resource Center
Interview With Roz Roseboro, Senior Analyst, Heavy Reading

10|31|14   |   3:13   |   (0) comments


Roz Roseboro commented on Huawei's data center capabilities and NFV solutions at the NFV Open Cloud Forum 2014, saying that in addition to covering all three key domains of compute, storage and networking, the company also emphasizes the importance of management capabilities and professional services, which are essential in making NFV a reality.
LRTV Huawei Video Resource Center
Interview With Michael Howard, Co-founder & Principal Analyst, Infonetics Research

10|31|14   |   5:25   |   (0) comments


Michael Howard talked about SDN, NFV, and OpenStack adoption at Huawei's NFV Open Cloud Forum 2014. Particularly, he pointed out that Virtual Enterprise CPE is the top NFV use case that operators plan to invest in over 2014 and 2015 to deliver new enterprise services through virtualized functions.
LRTV Huawei Video Resource Center
Interview With Jerry Caron, Senior Vice President, Current Analysis

10|31|14   |   3:11   |   (0) comments


At Huawei's NFV Open Cloud Forum 2014, Jerry Caron from Current Analysis said that orchestration and management are key to realizing SDN and NFV for global carriers, and the approach that Huawei is taking, with its FusionSphere Cloud OS at the core, is in the right direction to address the challenges.
LRTV Documentaries
Broadband Battles

10|31|14   |   01:39   |   (0) comments


This year's Broadband World Forum featured a number of show floor battles focused on access gear, components and coffee.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed