The carrier will pay around $3.3 (€2.45) billion for the spectrum
Today, wireless carrier T-Mobile announced an agreement with Verizon Wireless for the purchase of certain 700 MHz A-Block spectrum licenses.The company also announced that it had agreed to pay $2.365 (€1.74) billion in cash for the spectrum, along with the transfer of certain AWS and PCS spectrum licenses that have a value of around $950 (€698) million.
Following the deal, T-Mobile will have important low-band spectrum in 9 of the top 10 markets (or in 21 of the top 30 markets) in the US, given that it already owns some A-Block holdings in Boston.
“This is a great opportunity to secure low-band spectrum in many of the top markets in America,” said John Legere, president and CEO of T-Mobile.
“These transactions represent our biggest move yet in a series of initiatives that are rapidly expanding our already lightning fast network and improving its performance across the country.”
“We will continue to find ways to advance our customers’ network experience just as our bold Un-carrier moves have shaken up the wireless industry to benefit consumers,” he also said.
As a result of this transaction, T-Mobile is aiming at improving the network experience that its customers receive. The low-band spectrum will allow the carrier to offer better in-building coverage, as well as to boost the strength of its signal in rural areas.
Additionally, the spectrum will enable it to offer coverage at the edge of cities and in less densely populated areas, given that it travels greater distances compared to high-band spectrum.
“Combined with its existing Boston A-Block holdings, T-Mobile will have low-band spectrum covering approximately 158 million people — including New York, Los Angeles, Dallas, Houston, Philadelphia, Atlanta, Washington D.C., and Detroit,” the mobile phone carrier also said.
The company is set to begin rolling out service and compatible devices on this spectrum starting with the fourth quarter of this year.
As part of the new deal, both T-Mobile and Verizon will realign spectrum block in some markets, mainly in northern California and Atlanta, the wireless carrier announced.