T-Mobile to buy U.S. Cellular’s 10 MHz spectrum for $308 million

T-Mobile US will purchase 10 MHz of Advanced Wireless Services (AWS) spectrum from U.S. Cellular for a consideration of $308 million in cash.

The spectrum covers 32 million people in 29 markets.

Both T-Mobile and MetroPCS customers will benefit from the spectrum acquisition.

T-Mobile US on Friday said the additional spectrum will enable the telecom operator to enhance its 4G LTE network coverage to new markets. In addition, the mobile operator will expand the existing 4G / LTE bandwidth in Mississippi Valley region, one of the main markets for T-Mobile.

John Legere, president and CEO of T-Mobile, said: “This deal expands our network and capacity, allowing for a broader roll-out of 4G LTE and an even faster and more reliable 4G experience for our customers – in addition to spurring competition in the wireless marketplace.”

However, the agreement — announced today — is subject to approval by the Federal Communications Commission (FCC) and Department of Justice, and other customary closing conditions.

Following regulatory approval, the transaction is expected to close in the fourth quarter of 2013.

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