Challenger operator T-Mobile US has bought an assortment of 700 MHz spectrum licences from larger rival Verizon Wireless for US$2.37bn in cash and AWS and PCS frequencies worth an additional US$950m. T-Mobile was advised by TAP Advisors on the deal and…
Challenger operator T-Mobile US has bought an assortment of 700 MHz spectrum licences from larger rival Verizon Wireless for US$2.37bn in cash and AWS and PCS frequencies worth an additional US$950m.
T-Mobile was advised by TAP Advisors on the deal and said it expected a mid-2014 closing date, pending regulatory approval from the Federal Communications Commission and the Department of Justice.
T-Mobile disclosed that it was working on a private spectrum transaction in November and raised almost US$4bn that month through debt and equity offerings to help fund frequency acquisitions.
AT&T was also said to be interested in the frequencies, but T-Mobile has looked to be the lead bidder since its interest was first reported by local press in Q4 last year.
Commenting on the US$3.3bn transaction, T-Mobile CEO John Legere said: “This is a great opportunity to secure low-band spectrum in many of the top markets in America.”
He added that it was the company’s “biggest move yet” as it looks to expand and improve its network.
As part of the deal, Verizon and T-Mobile are also swapping a small number of spectrum blocks as they look to realign their portfolios.
