Telecom Lead America: T-Mobile has inked an agreement
with Verizon Wireless for the purchase and exchange of certain Advanced
Wireless Services (AWS) spectrum licenses in 218 markets across the U.S.
The deal will allow T-Mobile to acquire additional AWS
spectrum and to realign its existing spectrum holdings. With the transaction,
T-Mobile will be able to improve its spectrum position in 15 of the top 25
markets in the U.S.
This agreement will provide T-Mobile with critical AWS
spectrum, enhancing both network capacity and performance and allowing us to
meet the growing consumer demand for 4G mobile broadband,” said Philipp Humm,
CEO and president of T-Mobile.
T-Mobile said that the deal will enable it to compete
even more vigorously with other wireless carriers.
Awaiting regulatory approval from FCC and the Department
of Justice, the deal will allow T-Mobile to incorporate new spectrum into its
network modernization and the rollout of LTE services next year.
T-Mobile USA to invest $4 billion for network modernization and
launch LTE services
This agreement is in addition to T-Mobile’s previously
announced $4 billion 4G network evolution plan.
T-Mobile’s 4G network evolution plan includes
modernization of 37,000 cell sites, launching 4G HSPA+ services in the 1900 MHz
band and deployment of LTE in 2013.
T-Mobile expects to be the first carrier in North America
to modernize 4G network with new antenna integrated radios on many of its cell
towers, which will deliver higher performance and strengthen coverage.
Some of the spectrum T-Mobile is acquiring in this
transaction includes licenses that Verizon is purchasing from SpectrumCo, Cox
In exchange for spectrum covering 22 million people and
certain cash consideration, T-Mobile will gain spectrum covering 60 million
people, mainly in Philadelphia, Washington DC, Detroit and Minneapolis, with
some more cities.
Both operators will swap licenses in a number of markets
in which the companies to create more contiguous blocks of spectrum and re-align
spectrum in adjacent markets.
These intra-market swaps will enhance T-Mobile’s network
performance and data throughput in key locations.