Bloomberg: Verizon and T-Mobile Close to a Deal on Unused Spectrum

December 13, 2013 - Written By Alexander Maxham

You know, I thought Friday evening would be pretty quiet. I guess the folks at The Wall Street Journal and Bloomberg had other ideas. We just heard from WSJ that Sprint is looking to bid on T-Mobile in early 2014. Now we’re hearing from Bloomberg that Verizon and T-Mobile are close to a deal on the unused spectrum that Verizon has. We’ve heard that Verizon has been looking to sell their spectrum that they aren’t using, and that both AT&T and T-Mobile were interested in this spectrum.

Here’s what Bloomberg had to say about whats happening:

“Verizon Wireless is nearing an agreement to sell unused airwaves to T-Mobile US Inc. (TMUS) in exchange for cash and spectrum in cities where it needs more capacity, according to a person with knowledge of the process.”

If this deal does go through, it’ll be good for both carriers. As Verizon would be getting the spectrum they need in certain cities where they need the capacity, and T-Mobile would be getting some better spectrum for their network. The rumor is that the deal will be announced as soon as next week, of course after the formalities have been finalized. Once this is announced, T-Mobile would be able to offer coverage to an extra 150 million people. Which is a lot more people that would have coverage, and a lot less that would be complaining about T-Mobile not having coverage in their area.

It appears that there is nothing in the way of this deal going through. AT&T was interested in the spectrum, but it’s more likely for Verizon to sell it to T-Mobile and not AT&T. Since AT&T is a much bigger competitor to Verizon than T-Mobile. However there is the problem of the TV channel 51 interface, where frequencies of both the 700MHz band and channel 51’s waves clash in places. Also the FCC will need to approve the deal between Verizon and T-Mobile, before it becomes official.

Hopefully we’ll see this deal go through soon, as it could really help out T-Mobile.