Verizon buys wireless spectrum from Comcast, Time Warner, and Bright House for $3.6 billion

SpectrumCo, a joint venture between
Comcast, Time Warner Cable, and Bright House Networks, will sell its 122
advanced wireless services spectrum licenses covering 259 million POPs to
Verizon Wireless for $3.6 billion.

Comcast owns 63.6 percent of SpectrumCo and
will receive approximately $2.3 billion from the sale. Time Warner Cable owns
31.2 percent of SpectrumCo and will receive approximately $1.1 billion. Bright
House Networks owns 5.3 percent of SpectrumCo and will receive approximately
$189 million.

This sale of spectrum is an important step
toward ensuring that the needs and desires of consumers for additional mobile
services will not be thwarted by the current spectrum shortage. This
transaction ensures that the spectrum which is already available for mobile
services is used effectively to serve customers.

The companies also announced their
agreements, providing for the sale of various products and services. Through these
agreements, the cable companies, on the one hand, and Verizon Wireless, on the
other, will become agents to sell one another’s products and, over time, the
cable companies will have the option of selling Verizon Wireless’ service on a
wholesale basis.

Additionally, the cable companies and
Verizon Wireless have formed an innovation technology joint venture for the
development of technology to better integrate wireline and wireless products
and services.

“These agreements, together with our Wi-Fi
plans, enable us to execute a comprehensive, long-term wireless strategy and
expand our focus on providing mobility to our Xfinity services. We’re excited
about this partnership with Verizon Wireless and the future innovations we will
bring to consumers,” said Neil Smit, president of Comcast Cable.

“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. American businesses and consumers
can have confidence that the best wireless network has the foundational
resources to deliver on that promise,” said Dan Mead, president and CEO of
Verizon Wireless.

SpectrumCo’s sale and transfer of its
advanced wireless spectrum to Verizon Wireless is subject to approval by the
Federal Communications Commission and review under the Hart-Scott Rodino Act
and other customary conditions.

By Team
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