US incumbent AT&T has bought wireless firm NextWave Wireless for a total deal value of up to US$600m including debt.
The Dallas-based operator will acquire NextWave’s assets for US$25m, plus a contingent payment of up to US$25m, AT&T said in a…
US incumbent AT&T has bought wireless firm NextWave Wireless for a total deal value of up to US$600m including debt.
The Dallas-based operator will acquire NextWave’s assets for US$25m, plus a contingent payment of up to US$25m, AT&T said in a statement.
Through a separate agreement with NextWave’s debtholders, AT&T will also take on the wireless firm’s substantial US$550m debt burden.
NextWave’s debtholders and a majority of its shareholders have approved the sale, AT&T said.
AT&T noted in its statement that it is acquiring NextWave for its spectrum. The indebted firm has holdings in both Advanced Wireless Services (AWS) and Wireless Communication Services (WCS) bands, and AT&T is keen to boost its capacity.
In the spring it had to transfer spectrum licences in 128 markets to T-Mobile USA as part of the break-up fee following the collapse of its US$39bn to deal Deutsche Telekom’s US operator.
In February it was reported that AT&T was on the look out for spectrum deals. Rumours linked the incumbent to transactions with Dish Networks, MetroPCS and Leap Wireless, the last of which it has been reported to consider buying all-out.
Relaxation on WCS band?
The Federal Communications Commission (FCC) does not currently allow WCS to be utilised for mobile Internet due to potential interference with other bands, but that could be set to change.
In June AT&T and satellite radio firm Sirius XM submitted a joint filing with the FCC that listed proposals to resolve current issues with WCS that would allow it to be used for wireless internet.
The proposals, still under review by the FCC, would free up new capacity.
AT&T said if its proposals with Sirius are approved by the FCC, it could deploy its newly acquired WCS in three years.
The transaction is subject to review by the FCC and other customary closing conditions. NextWave’s transfer of assets may be subject to antitrust review by the Federal Trade Commission and Department of Justice.
