Verizon Buys Qwest Network and Sites

[BillRadio]

This is a lot of spectrum, and a whole turn-key network.

"Verizon Wireless To Purchase Qwest Wireless Spectrum, Network Assets

07/01/2004

BEDMINSTER, NJ and DENVER, CO -- Verizon Wireless and Qwest Communications International Inc. today announced a definitive agreement for Verizon Wireless to purchase Qwest Wireless' assets for $418 million, increasing Verizon Wireless' capacity in key existing markets and expanding its network into new markets.

The transaction is expected to close in the fourth quarter of this year or early 2005.

The agreement includes spectrum licenses in 62 markets in 14 western and mid-western states, covering a population of 30.8 million people. These licenses, all in the 1900 MHz PCS frequency range, average nearly 10 MHz per market. The transaction also includes Qwest Wireless' network switching centers, cell sites and related network equipment, which operate on the CDMA standard, the same as the Verizon Wireless network.

Fifty-three of the licenses being purchased are in markets where Verizon Wireless already operates its network, and will be used to expand capacity to meet growing demand for voice and data services. These markets include the major cities of Phoenix, Albuquerque, Tucson, Salt Lake City, Minneapolis-St. Paul, Denver, Portland (OR), Seattle, and Omaha.

The spectrum licenses also include several new markets for Verizon Wireless, and will expand the company's network footprint, the largest in the country, to an additional 1.5 million people. These new markets include: Rochester and St. Cloud, MN; Lincoln, NE; and Longview, WA.

The definitive agreement does not include Qwest Wireless' subscriber base.

About Verizon Wireless
Verizon Wireless is the nation's leading provider of wireless communications. The company has the largest nationwide wireless voice and data network and 40 million customers. Headquartered in Bedminster, NJ, Verizon Wireless is a joint venture of Verizon Communications (NYSE:VZ) and Vodafone (NYSE and LSE: VOD). Find more information on the Web at www.verizonwireless.com. To receive broadcast-quality video footage of Verizon Wireless operations, log onto www.thenewsmarket.com/verizonwireless.

Verizon Wireless and Qwest have signed a definitive agreement for Verizon Wireless to purchase Qwest's spectrum licenses and network assets in the following 62 markets:

Southwest:
Phoenix, AZ
Tucson, AZ
Prescott, AZ
Flagstaff, AZ
Albuquerque, NM
Santa Fe, NM
Nogales, NM

West Rockies:
Salt Lake City-Ogden, UT
Provo-Orem, UT
Boise-Nampa, ID
Idaho Falls, ID
Twin Falls, ID
Pocatello, ID
Lewiston-Moscow, ID
Billings, MT
Bozeman, MT
Great Falls, MT
Helena, MT
Missoula, MT
Butte, MT

East Rockies:
Denver, CO
Colorado Springs, CO
Fort Collins-Loveland, CO
Grand Junction, CO
Greeley, CO
Pueblo, CO
Casper-Gillette, WY
Cheyenne, WY
Riverton, WY

Midwest:
Omaha, NE
Lincoln, NE*
Fergus Falls-Alexndra, MN*
Rochester-Austin, MN*
Minneapolis-St. Paul, MN
Willmar-Marshall, MN*
St. Cloud, MN*
Sioux City, IA
Fargo, ND
Bismarck, ND
Rapid City, SD
Scottsbluff, NE*
Grand Island-Kearney, NE*

Oregon:
Portland, OR
Eugene-Springfield, OR
Salem-Albany-Corvallis, OR
Bend, OR
Klamath Falls, OR
Medford-Grants Pass, OR
Roseburg, OR
Walla Walla, WA-Pendelton, OR
Coos Bay-North Bend, OR*

Washington:
Bellingham, WA
Seattle-Tacoma, WA
Olympia-Centralia, WA
Longview, WA*
Spokane, WA
Bremerton, WA
Wenatchee, WA
Port Angeles, WA
Kennewick, WA
Aberdeen, WA
Yakima, WA

* New Markets for Verizon Wireless
#### "

[azcellphonejunkie]

I am definitely confused now. I thought that Sprint was taking over Qwest sites. Am I wrong about this?

[larry]

Sprint already got to pick and choose the Qwest cell sites they wanted or needed. They got first dibs. Verizon gets what's leftover and the spectrum. Verizon basically needed Qwest's spectrum (which Sprint didn't need because they already have plenty). So it's a win-win situation for both Sprint and Verizon.

[azcellphonejunkie]

Thank you, thank you, thank you for clearing that up. I thought I had lost my mind when I was reading about Verizon getting all the Qwest sites!

[Andy]

Larry you're right, sounds like a win-win situation. So this means that all of Qwests left over sites will be transformed to broadcast Verizon on 1900 Mhz...am I understanding that right??? Verizon already has a great network here in Utah, would be good to see them improve even more though!

[larry]

Yes that sounds right Andy. Although I still wonder why Cingular didn't try harder to get this deal unless they have something else cooked up.

[Andy]

Originally Posted by larry

Yes that sounds right Andy. Although I still wonder why Cingular didn't try harder to get this deal unless they have something else cooked up.

Thanks for your quick reply, Larry
Here's my other question, though. If Sprint got to pick out sites they wanted and Verizon gets the leftovers and transforms them to broadcast VZW 1900 Mhz, the 1900 network in those markets wouldn't be too good at first because Sprint picked out some cellsites for them...So Verizon would need to build new 1900 Mhz sites in order to have a strong 1900 Mhz network in those areas, right?
I don't have any clue whatsoever on Cingular...

[larry]

Well I don't think that would be a problem because Verizon can also broadcast 1900 Mhz from their exsisting 800 Mhz cell sites once they get the spectrum to do so. But yes they would likely need to build some new sites on their own to fill in certain areas.

[Andy]

Originally Posted by larry

Well I don't think that would be a problem because Verizon can also broadcast 1900 Mhz from their exsisting 800 Mhz cell sites once they get the spectrum to do so. But yes they would likely need to build some new sites on their own to fill in certain areas.

Thanks for the info, Larry. Is it an easy process to start broadcasting 1900 Mhz from existing 800 Mhz sites??
So we will most likely start seeing some 1900 Mhz only VZW sites some time??

[larry]

Yes it is an easy process. All they have to do in add/replace one panel per sector usually (unless there are newer ways to do it) and make minor changes in the equipment cabinets. I would expect to see some 1900 Mhz only Verizon sites soon.

[Andy]

Originally Posted by larry

Yes it is an easy process. All they have to do in add/replace one panel per sector usually (unless there are newer ways to do it) and make minor changes in the equipment cabinets. I would expect to see some 1900 Mhz only Verizon sites soon.

So only one panel per sector would transmit 1900???
Here in utah, at least, Verizon has cellsites that have a lot of small panels per sector, so they would only add/replace one panel of a sector that has 16 small panels(I don't know if you have ever seen those Verizon sites) on it??? Wierd!
But thanks so much for the info, Larry.