Verizon and T-Mobile look to shake hands over a transfer of spectrum recently that now only needs FCC approval to take place. With the transfer, both companies hope to broaden their output for customers, which Big Red will likely use to put towards their 4G LTE network. On the other side of the deal, T-Mobile can now begin their construction of an actual 4G network.
The agreement with T-Mobile is further evidence of the importance of a secondary spectrum market to give companies the flexibility to exchange or acquire spectrum to meet customers’ growing demands for wireless data services.
Specifics on how much this deal is worth are not being disclosed, but it could be pretty hefty. Only time will tell whether the FCC will have any objections or not.
VERIZON WIRELESS AND T-MOBILE USA AGREE TO TRANSFER SPECTRUM HOLDINGS
Agreement Enables LTE Expansion and Benefits Customers of Both Companies
BASKING RIDGE, NJ – Verizon Wireless today announced an agreement with T-Mobile USA to exchange specific spectrum in the AWS (Advanced Wireless Services) band. Under the agreement, both companies also will receive additional spectrum depth in specific markets to meet LTE (Long Term Evolution) capacity needs and enable LTE expansion. Since this agreement includes spectrum that will be purchased by Verizon Wireless in its transactions with SpectrumCo, Cox and Leap, this agreement is contingent on the closing of those transactions.
The agreement includes a number of intra-market spectrum swaps that will result in better use of the AWS band for both companies. The agreement also includes exchanges of spectrum between the companies in numerous markets which result in an overall net transfer of spectrum from Verizon Wireless to T-Mobile and a cash payment from T-Mobile to Verizon Wireless. Financial terms of the agreement are not being disclosed. The license transfers require FCC approval which is expected later this summer.
“The agreement with T-Mobile is further evidence of the importance of a secondary spectrum market to give companies the flexibility to exchange or acquire spectrum to meet customers’ growing demands for wireless data services,” said Dan Mead, president and CEO of Verizon Wireless. “The AWS licenses we’ll acquire from T-Mobile and through SpectrumCo, Cox and Leap will be used to add capacity to our 4G LTE network.”
The agreement between Verizon Wireless and T-Mobile is a private commercial arrangement that will allow both companies to optimize their respective spectrum holdings for LTE deployment and to meet their customers’ needs.