T-Mobile Wants to Buy Verizon’s Unused Spectrum

by Christopher Freeburn | November 20, 2013 10:00 am

T-Mobile Wants to Buy Verizon’s Unused Spectrum

T Mobile storefront 630 300x225 T Mobile Wants to Buy Verizons Unused Spectrum[1]Sources tell Reuters that the nation’s fourth-largest wireless carrier has approached a rival over a possible deal to purchase additional wireless spectrum[2].

Talks between T-Mobile (TMUS[3]) and Verizon Wireless – the country’s biggest carrier — over a possible purchase of wireless spectrum are still preliminary. A deal could cost T-Mobile up to $3 billion. Earlier this month, T-Mobile issued $2 billion in bonds in order to fund spectrum purchases.

Additional wireless spectrum would allow T-Mobile to boost the capacity of its wireless network. Verizon (VZ[4]), which is in the process of acquiring full ownership in Verizon Wireless[5], has recently expressed interest in possibly finding a buyer for certain “A Block” spectrum, which it tried to sell, unsuccessfully, last year.

Shares of both T-Mobile and Verizon rose slightly in Wednesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/09/T-Mobile-storefront-630.jpg
  2. over a possible deal to purchase additional wireless spectrum: http://www.reuters.com/article/2013/11/19/us-verizon-tmobile-spectrum-idUSBRE9AI0YR20131119
  3. TMUS: http://studio-5.financialcontent.com/investplace/quote?Symbol=TMUS
  4. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  5. acquiring full ownership in Verizon Wireless: http://investorplace.com/2013/09/vodafone-the-victor-in-verizon-wireless-buyout/#.UozNtpG1Kf0

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