US mobile operator Verizon Wireless has agreed to pay out US$3.6bn to acquire spectrum from SpectrumCo, a JV between three major US cablecos.
The acquisition includes 122 Advanced Wireless Services (AWS) spectrum licences.
SpectrumCo is made up of…
US mobile operator Verizon Wireless has agreed to pay out US$3.6bn to acquire spectrum from SpectrumCo, a JV between three major US cablecos.
The acquisition includes 122 Advanced Wireless Services (AWS) spectrum licences.
SpectrumCo is made up of three cablecos: Bright House Networks, Comcast and Time Warner Cable.
Comcast, which holds a 63.6% stake in Spectrum Co, will receive US$2.3bn. Time Warner Cable, with a 31.2% stake, will get US$1.1bn. Bright House Networks, with a 5.3% stake, will receive US$189m.
The deal is subject to regulatory approval.
The companies also said that they had entered into several agreements for the sale of various products and services.
The cablecos said that they and Verizon Wireless would become agents to sell each other’s products. The cablecos will also “over time” have the option to wholesale Verizon Wireless’s service.
The cablecos and Verizon Wireless have also formed an “innovation technology joint venture” that aims to develop technology “to better integrate wireline and wireless products and services”.
Verizon Wireless’s president and CEO, Dan Mead, said: “Spectrum is the raw material on which wireless networks are built, and buying the AWS spectrum now solidifies our network leadership into the future, and will enable us to bring even better 4G LTE products and services to our customers.”
Verizon Wireless is a JV between Verizon Communications (55% stake) and Vodafone (45% stake).
