Verizon Wireless buys licenses for $3B

[Kenny]

By Carolyn Pritchard, CBS MarketWatch.com
Last Update: 12:48 AM ET Nov. 5, 2004

SAN FRANCISCO (CBS.MW) -- Verizon Wireless said late Thursday that it has agreed to buy all of NextWave Telecom Inc.'s PCS spectrum licenses, in 23 markets around the country, for $3 billion.

The licenses will be acquired through the purchase of privately held NextWave Telecom following the completion of its bankruptcy reorganization, when it will own no assets other than the licenses.

The licenses had been tied up in court amid a lengthy legal spat between NextWave and the Federal Communications Commission. The dispute was resolved earlier this year.

In July, Verizon Wireless paid $930 million to NextWave for a coveted slice of spectrum covering 20 million people from the New York City area to northern New Jersey.

The licenses Verizon Wireless agreed Thursday to acquire will be used to expand the company's network capacity in 22 key existing markets, including New York, Boston, Washington, D.C. and Los Angeles, as well as to expand the company's footprint in Tulsa, Okla.

"This purchase is part of our long-standing strategy of continual network enhancements to provide our customers with the most reliable wireless network and, therefore, the most satisfying wireless experience," said CEO Denny Strigl in a company statement.

This transaction is expected to be funded through cash flow from operations and inter-company loans.

It remains subject to bankruptcy court and standard regulatory approval and is expected to close by mid-2005.

[bobolito]

Good to see spectrum will be getting used. Now all we need is Nextel starting to ***** about it saying that the C and F blocks aren't supposed to be assigned to large national carriers such as Verizon, just like they tried to do when Cingular bought some of Nextwave's licenses.

[Caiman1900]

Will any of these help out the Denver area?

[jones]

These are all 1900 MHz

Spectrum licenses for 20 MHz in:
New York, N.Y.
Washington, D.C.
Boston, Mass.
Baltimore, Md.

Spectrum licenses for 10 MHz in:
Los Angeles, Calif.
Philadelphia, Pa.
Detroit, Mich.
Denver, Colo.
Portland, Ore.
Tulsa, Okla.
Greenville, S.C.
Madison, Wis.
Columbia, S.C.
Springfield, Mass.
Corpus Christi, Texas
Daytona Beach, Fla.
Provo, Utah
Atlantic City, N.J.
Dover, Del.
Ocala, Fla.
Janesville, Wis.
El Centro, Calif.
Pittsfield, Mass.


And some posters here says 1900 MHZ is trash,
Like poor Building penetration.
Other people's trash is other people's treasure,
It's worth $3 Billion

[danny boi]

This should nicely enhance our network here in the LA market assuming they use it and build out. Whether it stays reserved for data or used for voice expansion, it's still a great move and benefits us all.

[M in LA]

This should nicely enhance our network here in the LA market assuming they use it and build out. Whether it stays reserved for data or used for voice expansion, it's still a great move and benefits us all.

I second that!!

[Gonz]

http://www.nextwavetel.com/company/network.html

Any other maps that are more accurate?
This one shows 95 markets, so are some of these now cingular's?

[agentHibby]

Any other maps that are more accurate?
This one shows 95 markets, so are some of these now cingular's?

This map is a little more messy but everything minus Florida Verizon will get that the map says Nextwave will keep.

[Andy]

One of the maps says they had licenses in Salt Lake City...was that what they sold to some other carrier earlier?? Or is this gonna go to VZW as well???