Telecom service provider T-Mobile US will acquire certain 700 MHz A-Block spectrum licenses from Verizon Wireless for $2.365 billion in cash.
The telecom operator also announced the transfer of certain AWS and PCS spectrum licenses, which have an estimated value of approximately $950 million.
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.
John Legere, president and CEO of T-Mobile, said: “These transactions represent our biggest move yet in a series of initiatives that are rapidly expanding our already lightning fast network and improving its performance across the country.”
Combined with its existing Boston A-Block holdings, T-Mobile will have low-band spectrum covering approximately 158 million people — including New York, Los Angeles, Dallas, Houston, Philadelphia, Atlanta, Washington D.C., and Detroit. T-Mobile anticipates rolling out service and compatible handsets on this A-Block spectrum in the fourth quarter of 2014.
In 2013, T-Mobile continued its LTE rollout, deploying 10+10 MHz 4G LTE in 43 of the top 50 metro areas and it is commencing substantive deployments of 20+20 MHz 4G LTE in 2014. The company launched its 4G LTE network in 2013, which currently covers approximately 209 million people in 273 metro areas.
Also, as part of the transaction, the two companies will realign spectrum blocks in certain markets, primarily in northern California and the Atlanta area.
