T-Mobile, Verizon Ink $3.3B Airwave Swap Deal

by Christopher Freeburn | January 6, 2014 11:39 am

The nation’s largest wireless carrier will sell spectrum rights to the fourth-biggest carrier[1].

T Mobile storefront 630 300x225 T Mobile, Verizon Ink $3.3B Airwave Swap Deal[2]
Source: Flickr[3]

Under the deal, T-Mobile (TMUS[4]) will pay Verizon Wireless (VZ[5]) $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[6].

Last month, rumors circulated that the third-largest U.S. wireless carrier Sprint (S[7]) might make a takeover bid for T-Mobile[8].

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.

Endnotes:
  1. sell spectrum rights to the fourth-biggest carrier: http://hosted.ap.org/dynamic/stories/U/US_T_MOBILE_SPECTRUM?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-01-06-09-03-48
  2. [Image]: http://investorplace.com/wp-content/uploads/2011/09/T-Mobile-storefront-630.jpg
  3. Flickr: http://www.flickr.com/photos/krazykritter/
  4. TMUS: http://studio-5.financialcontent.com/investplace/quote?Symbol=TMUS
  5. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  6. discussing the wireless spectrum deal since November: http://investorplace.com/2013/11/t-mobile-wants-buy-verizons-unused-spectrum/#.UsrZ0Xm1Kf0
  7. S: http://studio-5.financialcontent.com/investplace/quote?Symbol=S
  8. might make a takeover bid for T-Mobile: http://investorplace.com/2013/12/even-merger-chatter-t-mobile-us-buy/#.UsraF3m1Kf0

Source URL: http://investorplace.com/2014/01/t-mobile-verizon-ink-3-3b-airwave-swap-deal/
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