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T-Mobile to buy $3.3 billion in spectrum from Verizon

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

Joseph Keller is the former Editor in Chief of iMore. An Apple user for almost 20 years, he spends his time learning the ins and outs of iOS and macOS, always finding ways of getting the most out of his iPhone, iPad, Apple Watch, and Mac.

  • Does this relieve Verizon of the openness requirements that they agreed to as part of the initial 700mhz auction? Or an I getting my spectrum mixed up?
  • Verizon's consent decree does not involve the "A" block...
  • That falls under the C block that verizon bought not A, so no it does not.
  • Good for TMO, working to improve their coverage which is lacking in many areas and also building penetration.
  • Is Verizon's high-band spectrum so widely implemented that they wouldn't new that lower bandwidth anymore? Sent from the iMore App
  • Verizon has 700mhz "C" block.
  • That means better service for T-mobile. This is good for those subscribers. Sent from the iMore App
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