Verizon announces $3.6 billion deal for 122 AWS spectrum licenses

Verizon announces $3.6 billion deal for 122 AWS spectrum licenses
Verizon Wireless has just announced that it’s purchasing 122 Advanced Wireless Services (AWS) spectrum licenses covering 259 million POPs in the US. Big Red has entered into the deal with SpectrumCo, a JV of cable companies majority-owned by Comcast, but with 31.2% participation of Time Warner Cable and small presence from Bright House Networks. What exactly is the newly acquired AWS-1 spectrum good for? Verizon CEO Dan Mead explained:

“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.”

Comcast will get $2.3 million out of the deal, while Time Warner gets $1.2 billion and Bright House will be paid $189 milliion. The agreement actually covers a bit more than just spectrum - under its terms each of the companies will be able to sell services of the others and in the future it’s possible that the cable providers could sell Verizon services.

As you probably know, currently T-Mobile offers data services using AWS bands, so the 122 licenses could have been a great asset in the company’s effort to extend its 4G network. If Verizon Wireless gets the institutional green light for the deal, this leaves T-Mo in a difficult position with little choice. Interestingly, the $4 billion AT&T was supposed to give to T-Mobile in case the AT&T-T-Mobile merger doesn’t pass, would have fit the bill perfectly. 


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