T-Mobile US is acquiring $3.3 billion in unused spectrum licenses from Verizon Wireless. The spectrum consists of certain 700MHz A-block, and in addition to paying $2.365 billion in cash, T-Mobile will also be trading Verizon some of its own AWS and PCS spectrum, worth about $950 million. This purchase is an important investment in low-end spectrum for T-Mobile, according to the press release:
The transactions, combined with T-Mobile’s existing A-Block holdings in Boston, will result in T-Mobile having important low-band spectrum in 9 of the top 10 and 21 of the top 30 markets across the United States.
Low-band spectrum allows carriers better coverage inside buildings, in rural areas, and, due to it's greater travel distance over high-band spectrum, the edges of cities. T-Mobile US now has low-band spectrum available in Boston, New York, Los Angeles, Dallas, Houston, Philadelphia, Atlanta, Washington D.C., and Detroit. Assuming the FCC approves the sale, T-Mobile expects service using this spectrum, as well as compatible devices, to roll out later this year.
Source: Business Wire
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