Friday, January 25, 2013

Verizon Wireless Sells 700 MHz AWS Spectrum to AT&T

Verizon Wireless announced deals to sell some of its remaining lower 700 MHz band spectrum licenses. in certain western markets.  The deals include:

  • the sale of 39 lower 700 MHz B Block licenses to AT&T in exchange for a payment of $1.9 billion, and the transfer by AT&T to Verizon Wireless of AWS (10 MHz) licenses in Los Angeles, Phoenix, Fresno, Portland, Oregon and other smaller market.
  • the sale of lower 700 MHz B Block licenses covering the Charlotte, Greensboro and Raleigh-Durham markets in North Carolina to Grain Management, a Sarasota, Florida-based private equity firm that invests in the telecommunications sector, in exchange for a payment of $189 million.
  • Verizon Wireless will lease from Grain Management an AWS license covering Dallas, Texas, which Grain is acquiring from AT&T.

Previously, Verizon Wireless has sold or agreed to sell 35 of its 77 lower B block licenses to 10 different entities, including transactions that were initiated prior to the sale process. The company also noted that its LTE in Rural America program has signed leases covering the upper 700 MHz C block spectrum with 20 rural operators to jumpstart the delivery of 4G LTE in rural areas.

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