US incumbent AT&T is reported to be considering an acquisition of 700 MHz frequencies from Verizon Wireless to bolster its spectrum holdings This would put it in direct competition with challenger T-Mobile US that is also trying to buy the spectrum,…
US incumbent AT&T is reported to be considering an acquisition of 700 MHz frequencies from Verizon Wireless to bolster its spectrum holdings
This would put it in direct competition with challenger T-Mobile US that is also trying to buy the spectrum, people familiar with the matter told The Wall Street Journal.
Verizon said it planned to sell the “A block” frequencies last year and has already divested neighbouring spectrum.
In November T-Mobile raised close to US$4bn by issuing equity and debt to expand its spectrum holdings. Last week New Street Research analyst Jonathan Chaplin wrote he believed T-Mobile was “close” to a deal.
T-Mobile has been aggressively targeting AT&T’s market share and has had success in taking subscribers from the Dallas-based incumbent. In a memo today, MoffettNathanson analyst Craig Moffett has attributed a price-drop by AT&T to the “T-Mobile effect”.
