Light Reading

T-Mobile Spends $2.4B on Verizon Spectrum

Sarah Thomas
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        ADD A COMMENT
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   >   >>
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Gogo Approved to Speed Up In-Flight WiFi
Sarah Thomas, Editorial Operations Director, 8/24/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
Cats with Phones
Cats Are a Smartphone's Best Friend Click Here
Whoever said cats didn't live to please their humans?