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Leap and T-Mobile agree to exchange spectrum

Connectivity BusinessbyConnectivity Business
April 9, 2012
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Four US telecoms companies, including mobile operators Leap Wireless and T-Mobile USA, have agreed to exchange spectrum in various markets within the US. According to a Leap statement, the agreement involves the two mobile operators, Leap’s…

Four US telecoms companies, including mobile operators Leap Wireless and T-Mobile USA, have agreed to exchange spectrum in various markets within the US.

According to a Leap statement, the agreement involves the two mobile operators, Leap’s “non-controlled, majority-owned venture” Savary Island Wireless and Cook Inlet/VS GSM VII PCS LLC, a JV between T-Mobile and Cook Inlet in which T-Mobile holds a non-controlling majority interest.

Under the terms of the deal, Leap will acquire 10MHz of AWS spectrum in Arizona and Texas. T-Mobile and Cook Inlet will receive spectrum from Leap and Savary Island in Alabama, Illinois, Missouri, Minnesota and Wisconsin.

Cook Inlet, Leap and T-Mobile will also make “intra-market exchanges” of spectrum in several states.

Financial details were not disclosed and the deal is still subject to regulatory approval.

The news was announced yesterday, but T-Mobile said the companies had filed an application with the FCC on 4 April.

Leap president and CEO Doug Hutcheson said the deal would enable his company to re-align spectrum into contiguous channels in key markets, which would allow it to optimise the delivery of its wireless service.

“These transactions will enhance our spectrum depth in these markets and provide us longer-term flexibility to offer a larger LTE channel,” Hutcheson said.

T-Mobile said in a statement that the agreement would allow it to improve the 4G user experience as it moves to deliver “a fast nationwide 4G network and modernize our network for LTE services”.

 

Tags: Leap WirelessT-Mobile
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