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Verizon Wireless spends $3.6bn on spectrum
05 December 2011
Verizon Wireless will buy 122 spectrum licences from US cable industry’s SpectrumCo for $3.6bn
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Verizon Wireless
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Comcast
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Bright House
A company mainly backed by the US cable TV industry has agreed to sell Verizon Wireless its 122 spectrum licences covering a US population of 259 million for $3.6 billion. SpectrumCo’s partners — Comcast Corporation, Time Warner Cable and Bright House Networks — will receive around $2.3 billion, $1.1 billion and $189 million, respectively.
The move signals an end to the three cable operators’ aspirations to offer their own mobile services.
Under the deal, the three cable companies and Verizon Wireless will become agents to sell one another's products. Eventually, the cable companies will have the option of selling Verizon Wireless’s service on a wholesale basis.
The spectrum that Verizon Wireless plans to buy is called Advanced Wireless Services, which uses 1700 megahertz for uplink and 2100 megahertz for downlink. It was auctioned by the Federal Communications Commission in 2006.
The cable companies and Verizon Wireless — which is 45% owned by the Vodafone group — have also formed a joint venture to improve integration of wireline and wireless products and services.
Neil Smit, president of Comcast Cable, said: “These agreements, together with our wifi plans, enable us to execute a comprehensive, long-term wireless strategy and expand our focus on providing mobility to our Xfinity services.”
Dan Mead, president and CEO of Verizon Wireless, said: “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.” GTB
Further reading from Global Telecoms Business:
Cable operator Cox closes mobile service 16 Nov 2011
Verizon Wireless to unveil LTE phone 16 Mar 2011
Verizon to start selling iPhone 12 Jan 2011
Verizon launches 4G network in 39 markets 02 Dec 2010