T-Mobile reaches deals to buy Spectrum licenses from Verizon for $2.37B plus other licenses
A T-Mobile store is shown, Friday, Oct. 19, 2012 in New York. T-Mobile is a unit of Deutsche Telekom AG. THE CANADIAN PRESS/AP, Mark Lennihan
January 06, 2014 - 5:20 AM
BELLEVUE, Wash. - T-Mobile has reached deals to buy spectrum licenses from Verizon Wireless for $2.37 billion in cash.
T-Mobile is also transferring other kinds of spectrum licenses to Verizon Wireless that the companies value at about $950 million.
The deals, combined with T-Mobile's existing holdings, will give T-Mobile low-band spectrum in nine of the top 10 U.S. markets.
Low-band spectrum boosts cellular coverage inside buildings and in rural areas. It also has the ability to travel greater distances than high-band spectrum, making it a more efficient way to provide coverage at the edge of cities and in less densely populated areas.
T-Mobile US Inc., owned by Germany's Deutsche Telekom AG, plans to roll out service and compatible phones as early as the fourth quarter of 2014. The deals are expected to close in mid-2014 and remain subject to regulatory approvals.
News from © The Associated Press, 2014