T-Mobile pays USD2.37bn for Verizon 700MHz licences

7 Jan 2014

T-Mobile US has announced that its wholly-owned subsidiaries T-Mobile USA and T-Mobile License have signed agreements to purchase certain 700MHz A block spectrum licences from Verizon Wireless for USD2.365 billion in cash and the transfer of certain AWS and PCS spectrum licences, which have an aggregate estimated value of approximately USD950 million. Further, the two companies will also realign spectrum blocks in certain markets, primarily in northern California and the Atlanta area.

The transactions, when combined with T-Mobile’s existing A block holdings in Boston, will result in the cellco holding low-band spectrum in nine of the top ten and 21 of the top 30 markets across the United States – including New York, Los Angeles, Dallas, Houston, Philadelphia, Atlanta, Washington DC and Detroit. T-Mobile anticipates rolling out services and compatible handsets on this A block spectrum as early as the fourth quarter of 2014.

United States, T-Mobile US, Verizon Wireless