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Verizon announces $3.6 billion deal for 122 AWS spectrum licenses

Posted: , by Victor H.

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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.”

Verizon announces $3.6 billion deal for 122 AWS spectrum licenses
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. 

+- Press Release

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posted on 02 Dec 2011, 09:38 6

1. bauerlives (Posts: 2; Member since: 30 Sep 2011)

Not to be a stickler, but I think Comcast is getting $2.3 Billion, not million. #corrections

Great article though, Verizon is going to dominate the 4G market and they will pry my unlimited data plan from my cold,dead fingers.

posted on 02 Dec 2011, 11:37 1

2. corporateJP (Posts: 2458; Member since: 28 Nov 2009)

Yeah...funny. AT&T could have bid on it and grew their network the right way.

Good for Verizon...they are the lesser of two evils.

posted on 02 Dec 2011, 12:03

3. Slammer (Posts: 1515; Member since: 03 Jun 2010)

The Duopoly is almost complete. Sprint in partnership with Clear and their combined spectrum holdings, is the consumer's last hope in stopping this regiment.

John B.

posted on 02 Dec 2011, 15:35

4. T00muchF00D (Posts: 98; Member since: 27 Nov 2011)

Sprint at the share holders meeting had clearwire at the absolute bottom of the list of importance. So dont hold your breath. Now I wish they didnt invest in all this lte with lightsquared. I wanted to see a nation blanketed in wimax and then for 5g they could have upgraded it to WiMax 2 (which is faster). Idk man sprint Is crazy

posted on 02 Dec 2011, 17:12

5. bauerlives (Posts: 2; Member since: 30 Sep 2011)

I think they should have just bought Clearwire instead of getting into bed with LightSquared. I think LS is going to have MAJOR federal issues since their current network is killing the GPS systems on a national scale. They should have just bought Clearwire, and transitioned their tower infrastructure to LTE. (That probably would have been better for my Clearwire and Sprint stock).

posted on 03 Dec 2011, 22:28

6. hepresearch (unregistered)

Verizon just pwned both AT&T and T-Mobile, both at the same time...

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