Verizon Wireless has hired Loop Capital as co-adviser for the proposed sale of spectrum licences, according to a statement released by the operator.
Loop Capital joins Stephens Inc in handling the sale.
Verizon is looking to divest lower 700 MHz A…
Verizon Wireless has hired Loop Capital as co-adviser for the proposed sale of spectrum licences, according to a statement released by the operator.
Loop Capital joins Stephens Inc in handling the sale.
Verizon is looking to divest lower 700 MHz A and B block spectrum licences to preempt potential concerns of the US Federal Communications Commission (FCC). The regulator is evaluating Verizon’s purchase of US$3.9bn of advanced wireless spectrum (AWS) from cablecos in December last year, amid accusations that it is hoarding spectrum.
The proposed acquisition has drawn fierce criticism from T-Mobile USA and Sprint, which worry about an AT&T / Verizon duopoly.
Operators have already expressed interest in purchasing the A and B block licenses, which Verizon put up for sale last month. US Cellular expressed its interest in a filing with the FCC two weeks ago, and MetroPCS’ CFO said last week that his company would be interested. However, both raised concerns about the interference that A block spectrum experiences with channel 51. Before bands of 700MHz were sold to telcos, the whole spectrum was used for broadcast and some of it still is, which has caused interference issues for wireless operators.
T-Mobile USA has said it is not interested as the spectrum is not compatible with its own.
The licences, which Verizon bought in 2008, come with a build out requirement. Under the terms of its purchase, Verizon is required to build a network by June 2013 or face a reduction in its licence terms. The operator has not utilised the band as yet.
Verizon said its decision to sell the lower 700 MHz band was contingent on the FCC approving its purchase of AWS. This, in turn, led the FCC to ask last week if the lower 700 MHz sale was contingent on its regulatory approval of all of Verizon’s AWS purchases.
