The nation’s largest wireless carrier will sell spectrum rights to the fourth-biggest carrier.
Under the deal, T-Mobile (TMUS) will pay Verizon Wireless (VZ) $2.37 billion for the transfer of low-band spectrum frequency licenses and another $950 million for licenses covering other wireless spectrum. T-Mobile will use the additional spectrum to bolster cellular service to T-Mobile customers in major markets across the U.S., the Associated Press notes.
Once the transfers are completed, T-Mobile will possess low-band spectrum in nine of ten largest U.S. metropolitan markets, including Dallas, Atlanta, Philadelphia, New York and Los Angeles.
Verizon and T-Mobile had been discussing the wireless spectrum deal since November.
News of the wireless spectrum deal sent TMUS stock up almost 2% in Monday morning trading, while VZ stock slipped slightly. TMUS stock rose more than 20% during December.