Verizon, T-Mobile agree to swap AWS licences

Verizon Communications Inc. and T-Mobile USA Inc. have reached a deal to swap AWS spectrum licences in 218 United States markets, the companies said Monday. The deal, which requires regulatory approval from the U.S. Federal Communications Commission (FCC), “will improve T-Mobile’s spectrum position in 15 of the top 25 markets in the U.S. by providing an opportunity for T-Mobile both to acquire additional AWS spectrum and to realign its existing spectrum holdings,” the company said in a release. “Following regulatory approval, this spectrum can be promptly deployed to enhance the company’s 4G mobile broadband service, including the rollout of LTE service next year.” T-Mobile said in the release it will receive spectrum covering 60 million people as a part of the deal in exchange for spectrum covering 22 million people as well as a “certain cash consideration.” “The agreement also includes exchanges in a number of markets in which the companies will swap licenses to create more contiguous blocks of spectrum and re-align spectrum in adjacent markets,” the company said. Robin Bienenstock, an analyst with Bernstein Research, told Reuters that “T-Mobile USA will gain AWS (Advanced Wireless Services) spectrum in many regions of the Northeast where it has historically had a weak portfolio, and give up small portions of spectrum in California where it has ample spectrum holdings.” Verizon said in April it is prepared to sell off some of its prized 700 MHz spectrum in exchange for FCC approval of another deal that would allow the company to acquire AWS spectrum from some U.S. cable providers. T-Mobile, which had opposed Verizon’s deal with the cablecos, agreed to drop its opposition as a part of the spectrum swap, which will deliver some of the cablecos’ spectrum to T-Mobile, the company said.

Verizon, T-Mobile agree to swap AWS licences

Brief | June 27, 2012

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