The shareholders of Nextwave Wireless have approved the US$600m bid by AT&T to acquire the company.
Under the agreement reached at the beginning of August, AT&T will take on Nextwave’s US$550m debt burden and pay US$25m in cash for the company’s…
The shareholders of Nextwave Wireless have approved the US$600m bid by AT&T to acquire the company.
Under the agreement reached at the beginning of August, AT&T will take on Nextwave’s US$550m debt burden and pay US$25m in cash for the company’s assets, plus a further contingent payment of up to US$25m..
Nextwave has licences for both Advanced Wireless Services (AWS) and Wireless Communication Services (WCS) bands – an attractive proposition for AT&T that is keen to boost its spectrum footprint.
WCS spectrum cannot currently be used for wireless broadband services but relaxing the regulatory barriers imposed on the frequencies is on the FCC’s agenda for its next open meeting scheduled 17 October. Chair Julius Genachowski circulated a proposed order to fellow commissioners last week.
The issue is whether using wireless services on the band would interfere with satellite radio broadcaster Sirius XM. However, AT&T and Sirius co-submitted a plan to tackle the interference in the summer.
AT&T said if its proposals with Sirius are approved by the FCC, it could deploy its newly acquired WCS in three years.
AT&T has been working on a number of relatively small spectrum deals in light of Verizon Wireless’ massive US$3.9bn acquisition of AWS licences from cablecos, which received conditional regulatory approval in August.
AT&T also had to transfer spectrum licences in 128 markets to T-Mobile USA in the spring. That was as part of the break-up fee following the collapse of its US$39bn deal to acquire Deutsche Telekom’s US operator.
