T-Mobile has announced that it has a deal in place that will see the wireless carrier acquire some A-Block 700 MHz wireless spectrum from Verizon Wireless. T-Mo has agreed to purchase certain 700 MHz A- block spectrum licenses from Verizon Wireless for $2.365 billion in cash.
The deal also involves T-Mobile transferring certain AWS and PCS spectrum licenses with an aggregated values estimated to be $950 million to Verizon. T-Mobile already owns some A-Block spectrum in Boston and the new spectrum from Verizon will give T-Mo low-band spectrum in nine of the top ten and 21 of the top 30 markets in the US.
T-Mobile notes that this low band spectrum has improved coverage in buildings and in rural areas. The low band spectrum is able to carry further than high band spectrums. With the new purchase, T-Mobile will have low band spectrum covering 158 million people in cities including New York, Dallas, LA, Houston, Philadelphia, Atlanta, Detroit, and Washington D.C.
T-Mobile says that it will roll out service and compatible handsets for the newly aired spectrum by Q4 of 2014. The transaction will also see T-Mobile and Verizon realign spectrum in certain markets like northern California and Atlanta. The deal is subject to FCC, DOJ, and other closing conditions. The regulatory approval for the deal is expected to come in mid-2014.