Verizon and T-Mobile Agree to Swap AWS and PCS Spectrum Licences in $173 Million Deal

by Istvan Fekete on August 4, 2015

T-Mobile and Verizon have inked a $173 million deal under which the two carriers will exchange a slew of AWS-1 and PCS spectrum licences in multiple markets in the US. The transfer will close by the end of the fourth quarter 2015 and includes spectrum swaps in Arkansas, California, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New York, North Dakota, Ohio, Pennsylvania, South Dakota, Tennessee, and Virginia.

The disclosure comes from a T-Mobile filing with the FCC, which was spotted by FierceWireless. As expected, the swap doesn’t include any transferred customers or network gear.

“These assignments involve only the transfer of spectrum; no network or other assets or customers are involved,” the companies said in a filing with the FCC outlining the public interest benefits of the deal — a standard procedure. “The assignments are, in all markets, intra-market license exchanges that will enable more efficient operations resulting from larger blocks of contiguous spectrum and/or the alignment of spectrum blocks held in adjacent markets. All of these intra-market exchanges involve the exchange of an even amount of spectrum, where neither Party will increase its spectrum holdings in the market.”

The spectrum swap ultimately aims to bring both players major benefits in the form of larger blocks of contiguous spectrum or alignment of spectrum held in adjacent markets. This allows carriers to operate more efficiently by facilitating handoffs when users transition to the adjacent markets, the filing reads.

The companies say that after (and before) close, T-Mobile will hold (and had held) between 15 MHz and 102 MHz of spectrum in the counties where spectrum is being assigned to T-Mobile, and Verizon and its subsidiaries will hold (and had held) between 72 MHz and 167 MHz of spectrum in the counties where spectrum is being assigned to the Verizon licensees.

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Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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