T-Mobile to Buy Unused Spectrum from Verizon Wireless in a $3 Billion Deal

| January 6, 2014 | 5 Replies

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In the latest announcement from T-Mobile, the company has announced that they have signed an agreement with Verizon Wireless to purchase certain 700 MHz A-Block spectrum licenses for $2.365 billion. Additionally T-Mobile would transfer certain AWS and PCS spectrum licenses to Verizon, which are valued close to $950 million. This brings the total valuation of this spectrum block close to $3 billion. These transactions boost T-Mobile’s spectrum holdings, especially in the important low-band spectrum range, which is beneficial for the telecom major for their 4G LTE rollouts. AT&T and T-Mobile had both been vying for this spectrum band, however in the end, the deal fell to T-Mobile.

On the conclusion of this purchase, T-Mobile now holds low-band spectrum in 9 out of the top 10 and 21 out of top 30 markets across the United States. T-Mobile intends to improve network experience for end-users, in which endeavor low-band spectrum is most useful; especially since low-band spectrum provides substantially improved in-building coverage as well as performs better for rural coverage as it covers more ground as well. Telecom operators on lower band spectrum (especially 700 MHz to 900 MHz) enjoy benefits of having to roll out less sites and invest less in infrastructure for the same quality of service than those on the 1800 MHz (and higher) spectrum bands.

John Legere, President and CEO T-Mobile had this to say – “This is a great opportunity to secure low-band spectrum in many of the top markets in America. These transactions represent our biggest move yet in a series of initiatives that are rapidly expanding our already lightning fast network and improving its performance across the country. We will continue to find ways to advance our customers’ network experience just as our bold Un-carrier moves have shaken up the wireless industry to benefit consumers.”

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T-Mobile had launched a nation-wide 4G LTE network last year, which approximately covers 209 million people in 273 metro areas. Speculations about this deal notwithstanding, the agreements have been signed off between the two telecom majors, a major milestone still remains – approval by the Federal Communications Commission (FCC) and the Department of Justice.  Once these approvals are received, the deal will be closed sometime in mid-2014.

Are you an existing t-Mobile customer and does this deal excite you. Let us know. our comments section awaits your views.

Category: Android Carrier News

About Syed Sofian Rabbani ()

My involvement with Android - as a fan and user - started in 2009-10 when I had dual-booted Android 2.2 Froyo on my SE Xperia X1. I have been following the rapid (and much deserved) rise of Android since then and have been rooting and flashing every android phone I could get my hands on. A self-proclaimed tech expert, in my free time I catch up on my reading and play with my one-year-old daughter.
  • Gwanatu

    Any network improvements on T-Mobile are welcome. I love them but they’ve got some serious issues with 4G coverage outside of metropolitan areas.

  • thumperbig

    ha )First off,I am a subscriber of Tmobile . I pay a ridiculously high amount for four lines on my contract.I currently owe the remaining balances for all but one of the smartphones that are in our household. Anyways,I have had many problems with Tmobile over the past 2+ years over numerous issues. One being the quality of service I have received using my high end phone. The fact that a carrier like T-Mobile, which I am not too sure if they’re even an American Company being ran by Americans; is the beneficiary of one of the most lucritive and quite disturbing business deals of all time.When the US Government auctioned off the spectrum used for radio broadcasting as well as other services I believe,yes, remember the MANDATORY adoption of digital television? well, ;) for all of you holier and smarter than thou imbeciles that didn’t seem to register the thought that maybe there was something going on that wasn’t on the up and up..DUMMY!!! ;). ..So let’s recap the events leading up to this articles topic. We all followed along while these multi-billion dollar (and every other foreign currency denomination) Companies sat at a quiet auction amongst thee Elite, and quite hungrily spent much of they’re stock investors cash on this wonderful spectrum license.
    WELL guess what. The Government and the Companies involved are the only ones benefiting off this whole Shabang..why? you ask? BECAUSE this spectrum happens to be a “frequency”that just so happens to be the exact same frequency our brains use in doing what our brains are meant to do. Which is think!!! So be pleased to know that you now have your brain, being monitored,yes monitored, by our wonderful technologically intrusive and always on Smart phones! PS…thanks for the brain tumors, Breast cancer and Oh yeah..Google… Lmao…they own a registered patent of this technology described above.. Don’t believe me? Google it..then ;)

    • Oliver Jackson-Ali

      If you don’t like it,then leave .No one holding a gun to your head

      • WellRead

        They put a cellular tower up by my house. Now my wife and I have headaches that are not present when we are gone from home for more than a few days. We will have to move to a less electromagnetically polluted area. It is becoming more difficult to avoid gene damaging WiFi and cellphone radiation frequencies even if you do not have a cellphone.

        • Oliver Jackson-Ali

          Unfortunately that’s true. You can always write to the FCC,They control these regulations anyways.