Under the terms of a deal struck in June, Verizon Wireless and T-Mobile will swap spectrum across a total of 218 markets. The spectrum includes some AWS capacity that Verizon Wireless hopes to obtain from Leap Wireless International Inc. (Nasdaq: LEAP), Comcast Corp. (Nasdaq: CMCSA, CMCSK), Cox Communications Inc. , Time Warner Cable Inc. (NYSE: TWC) and Bright House Networks . Therefore, the deal can't go ahead unless the FCC approves the $3.6 billion spectrum deal between Verizon and the cable companies.
In a letter to the FCC dated July 26, T-Mobile is urging that Verizon's deal gets approved as the swap helps alleviate competitive concerns related to Verizon’s spectrum concentration:
"This infusion of spectrum will enable T-Mobile to deploy LTE services in a number of markets where such deployment would otherwise have been impossible, and to enhance its LTE service in a number of additional markets where T-Mobile would have otherwise been limited to a 5x5 MHz LTE deployment," writes Kathleen O’Brien Ham, VP of federal regulatory affairs at T-Mobile. The letter reveals that Jim Alling, interim CEO of the operator, and other T-Mobile executives have been meeting the FCC about the issue.
Why this matters T-Mobile needs all the spectrum it can get its hands on for deploying planned 4G LTE services in 2013.
- Verizon Spectrum Debate Escalates
- VZ Wireless/T-Mobile Spectrum Deal Has a Catch
- VZ Wireless, Cable Guys Fight for Spectrum Deal
- T-Mobile Picks NSN, Ericsson for LTE
— Dan Jones, Site Editor, Light Reading Mobile