AT&T has applied to the Federal Communications Commission (FCC) for permission to purchase all of Sprint Corporation’s WCS spectrum holdings.
The US incumbent told the regulator that it intends to use the WCS frequencies for mobile broadband, although…
AT&T has applied to the Federal Communications Commission (FCC) for permission to purchase all of Sprint Corporation’s WCS spectrum holdings.
The US incumbent told the regulator that it intends to use the WCS frequencies for mobile broadband, although at present there are no commercially-available handsets or base stations compatible with the 2.3 GHz band.
Sprint owns 19 WCS licences spread across the south of the US, which were valued by UBS analyst John Hodulik at US$130m in 2012.
In an FCC filing AT&T argued that the acquisition of the 2.3 GHz spectrum was in the public interest as it would increase the availability of public broadband.
Last month AT&T said it will use LTE technology and some of its spectrum to offer in-flight wifi services starting in late 2015, and it could use the WCS spectrum for this, according to Fierce Wireless which first reported the transaction.
AT&T was granted the right to use its WCS spectrum for LTE in 2012 by the FCC, following years of concerns that wireless services would interfere with satellite radio broadcaster Sirius XM, which operates on a neighbouring band.
The approval followed its US$600m acquisition of NextWave Wireless earlier in 2012, which held a significant amount of WCS airwaves.
For Sprint’s part, its WCS licences are redundant as it focuses on building out its substantial holdings in the more familiar 800 MHz, 1900 MHz and 2.5 GHz.
The application comes as AT&T is looking to consolidate its position in the US market. It is said to be in negotiations with DTH operator DirecTV about a merger as it looks over its shoulder at the wave of consolidation which could happen in the US market. AT&T appears likely to have to contend with the creation of a pay-TV giant in the form of a merged Comcast and Time Warner Cable, which are pursuing regulatory approval for their tie-up.
It could also face a stronger competitor in the mobile market as Sprint and T-Mobile US continue to court each other. Despite the regulators making noises which suggest they are not keen, the telcos appear to think they could get a deal through.
