AT&T has announced a deal with Verizon Wireless that will allow the company to continue to build out its 4G LTE network in the U.S., through the acquisition of 700 MHz spectrum from Verizon Wireless. The 700 MHz band was originally used to broadcast analog TV channels, but the transition to digital TV made them available for auction in 2008. Verizon won Block A during that auction, along with U.S. Cellular, with licenses covering urban areas, while AT&T was the biggest buyer of Block B, acquiring 227 licenses in the sale.
AT&T uses the 700 MHz spectrum to provide 4G LTE coverage to its customers in the U.S., along with spectrum in the AWS band. As part of the deal, it is providing licenses of the AWS spectrum in several markets, including LA, Fresno and Portland, to Verizon for use in the continued deployment of its network. AT&T’s spectrum acquisition will allow it to deploy LTE covering 42 million people across 18 states, the company said in a press release.
Verizon revealed its intention to divest itself of extra 700 MHz licenses it picked up in the auction back in 2008 in April 2012. It acquired 127 licenses in Block B, which are the ones involved in this sale. The company had held onto the block B licenses to provide supplemental coverage in urban areas before it had acquired other licenses it needed to fill in those gaps in its nationwide network, and it makes sense for AT&T to pick these up, since they’re exactly what that carrier needs to continue to roll out its own LTE network.
Full release below.
AT&T Agrees to Acquire 700 MHz Spectrum from Verizon Wireless
Dallas, Texas, January 25, 2013
AT&T* announced in an 8-K filing today that it has agreed to acquire spectrum in the 700 MHz B band from Verizon Wireless for $1.9 billion in cash and Advanced Wireless Services (AWS) spectrum licenses in several markets, including Phoenix, Ariz., Los Angeles and Fresno, Calif. and Portland, Ore.
The 700 MHz licenses to be acquired by AT&T cover 42 million people in 18 states — California, Colorado, Florida, Idaho, Illinois, Louisiana, Montana, New Mexico, New York, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, Virginia, Washington and Wyoming.
This acquisition complements AT&T’s existing holdings in the 700 MHz B band and will allow AT&T to continue to quickly deploy 4G LTE services to meet demand for mobile Internet services on a wide array of smartphones, tablets and other devices. The company announced in November 2012 that it plans to reach 300 million people in the U.S. with its 4G LTE network by the end of 2014.
In conjunction with this transaction, AT&T will sell to Grain Management a single AWS license and will lease 700 MHz spectrum from Grain Management in three markets.
The transaction is subject to regulatory approval. AT&T anticipates closing the transaction in the second half of 2013.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
AT&T Inc. (NYSE:T) is a premier communications holding company and one of the most honored companies in the world. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and internationally. With a powerful array of network resources that includes the nation’s largest 4G network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet, voice and cloud-based services. A leader in mobile Internet, AT&T also offers the best wireless coverage worldwide of any U.S. carrier, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T |DIRECTV brands. The company’s suite of IP-based business communications services is one of the most advanced in the world.
Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com/aboutus or follow our news on @ATT, on Facebook athttp://www.facebook.com/att and YouTube at http://www.youtube.com/att.
© 2013 AT&T Intellectual Property. All rights reserved. 4G not available everywhere. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this press release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.
AT&T Inc. (AT&T) is a holding company. AT&T is a provider of telecommunications services in the United States and worldwide. Services offered include wireless communications, local exchange services and long-distance services. AT&T operates in four segments: Wireless, Wireline, Advertising Solutions and Other. Its Wireless subsidiaries provide both wireless voice and data communications services across the United States, and through roaming agreements, in a substantial number of foreign countries. Wireline subsidiaries provide primarily landline voice and data communication services, AT&T...
Verizon Communications Inc. delivers broadband and other wireline and wireless communication innovations to mass market, business, government and wholesale customers. Verizon Wireless operates America’s largest wireless network that serves nearly 102 million customers nationwide. Verizon’s Wireline operations include Verizon Business and Verizon Telecom, which brings customers converged communications, information and entertainment services over Verizon’s fiber-optic network.