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 Custom TV
Razorsight Expert's Advice on Real-Time Analytics

11|27|14   |   1:43   |   (0) comments


Razorsight's powerful cloud-based Predictive Analytics solutions are used by the world's leading communications and media brands to drive smarter decisions, enable faster actions and optimize outcomes. Get expert advice.
LRTV Interviews
From 4G to 5G: Alcatel-Lucent's Dave Geary

11|25|14   |   09:09   |   (1) comment


Dave Geary, President of Wireless at Alcatel-Lucent, talks about the evolution of the 4G market, small cells, partnerships, 5G and the IoT.
LRTV Huawei Video Resource Center
Building a Secure Telefonica Network With Huawei's High-End Firewall

11|24|14   |   4:37   |   (0) comments


Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
LRTV Huawei Video Resource Center
Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

11|24|14   |   2:50   |   (0) comments


Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
LRTV Huawei Video Resource Center
Saudi Airlines & Its ICT Transformation

11|24|14   |   2:07   |   (0) comments


In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
LRTV Huawei Video Resource Center
Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

11|24|14   |   2:40   |   (0) comments


Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
LRTV Huawei Video Resource Center
FanPlay & Huawei Build a Wireless Agile Smart Stadium

11|24|14   |   2:13   |   (0) comments


FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
LRTV Huawei Video Resource Center
Building an Agile Stadium

11|24|14   |   3:54   |   (0) comments


Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
LRTV Huawei Video Resource Center
Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

11|24|14   |   3:09   |   (0) comments


ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
LRTV Huawei Video Resource Center
Cefinity on Managed Security Services & Next-Generation Firewall

11|24|14   |   7:05   |   (0) comments


Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
LRTV Huawei Video Resource Center
Huawei's Agile Gateway in the Eyes of Cefinity

11|24|14   |   2:11   |   (0) comments


Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
LRTV Huawei Video Resource Center
CTO of Bus-Online Talks About Huawei's Agile Gateway

11|24|14   |   2:53   |   (0) comments


Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Net Neutrality Even Mark Cuban Could Love
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/26/2014
Why 5G Is a Different Beast
Robert Clark, 11/26/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
Eurobites: Net Neutrality Battle Looms
Paul Rainford, Assistant Editor, Europe, 11/27/2014
New Juniper CEO Can Be Thankful for $14.5M
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/25/2014
Like Us on Facebook
Twitter Feed