NextWave Sells $150 Million Of Spectrum To T-Mobile, Others

[SteveW]

NextWave Sells $150 Million Of Spectrum To T-Mobile, Others

The deal gives T-Mobile, MetroPCS, ACS Wireless, and Atlantic Wireless portions of this coveted spectrum.

By W. David Gardner
InformationWeek
July 25, 2008 04:43 PM

NextWave Wireless announced this week it sold 63% of its Advanced Wireless Services spectrum for about $150 million.

Pending FCC approval, the company will sell 599 million MHz-pops of its AWS spectrum to T-Mobile USA, MetroPCS, ACS Wireless, and Atlantic Wireless. NextWave originally acquired all of its AWS licenses for about $115 million at the FCC auction in 2006.

The AWS spectrum is coveted by wireless operators because it can be used to provide mobile voice and data services, as well as video and messaging.

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SW

[Mobile Mike]

I guess T-Mobile needs more 1700mhz spectrum...Who knew?

I keep wondering if I'll see their 3G service in my lifetime...

[RadioRaiders]

Hey, not bad, I guess. They made $35 million in just 2 years, and still have 37% of their spectrum.

Are there any laws in the US against "spectrum speculation"? (ie: buying spectrum with no intent to build a network) Or can anyone bid and buy? But then doesn't the FCC put any requirements on the spectrum holder? For example, in most EU countries, whoever buys a cellular spectrum license, has to by law provide a certain amount of coverage and service within a year or 2 or they lose their license.

Originally Posted by SteveW

The AWS spectrum is coveted by wireless operators because it can be used to provide mobile voice and data services, as well as video and messaging.

Is the 1700Mhz band really "coveted"? The 700Mhz and 850Mhz may be. But the 1700 band is more like the "ok-we-couldn't-get-any-other-bands-so-we'll-take-it" spectrum....

[bobolito]

Nextwave has always been a fake. Always buying spectrum either don't pay for it or end up reselling it.

[larry]

Originally Posted by Mobile Mike

I guess T-Mobile needs more 1700mhz spectrum...Who knew?

I keep wondering if I'll see their 3G service in my lifetime...

T-Mobile seems to always be wanting more and more spectrum. I thought they already had plenty to go around.

[bobolito]

Originally Posted by larry

T-Mobile seems to always be wanting more and more spectrum. I thought they already had plenty to go around.

Not as much as Sprint or AT&T.

[SteveW]

Originally Posted by Mobile Mike

I guess T-Mobile needs more 1700mhz spectrum...Who knew?

I keep wondering if I'll see their 3G service in my lifetime...

T-Mobile's "3G rollout" is still in stealth mode. A few 3G (UMTS), but no HSDPA phones in its lineup. No 3G marketing, except for one press release from May. No announcements about 3G anywhere but in New York City.

I wouldn't have thought that NYC would be the easiest location technically to release a new service, and definitely not the easiest place to deal with potential glitches or customer issues. Why not try a smaller city that is more compact and has a lower profile? I'm no expert in such things, but wouldn't you want to test in say, Charlotte, Tallahassee, Austin or Tuscon before tackling NYC?


SW

[SmArTeStChIlD421]

and with this Verizon/ALLTEL merger..

...not as much as Verizon



I guess T-Mobile figures that if they can get it right in NYC they can get it right everywhere

[SteveW]

Originally Posted by SmArTeStChIlD421

I guess T-Mobile figures that if they can get it right in NYC they can get it right everywhere

"If I can make it there
I'll make it anywhere
It's up to you, New York, New York."

My point is that a Kander and Ebb song may not be the best project plan for a rollout of advanced telecommunications. You don't just guess at such things when billions of dollars and your corporate reputation is at stake. They must have a good reason, but this isn't it.



SW

[Mobile Mike]

Originally Posted by SteveW

T-Mobile's "3G rollout" is still in stealth mode. A few 3G (UMTS), but no HSDPA phones in its lineup. No 3G marketing, except for one press release from May. No announcements about 3G anywhere but in New York City.

I wouldn't have thought that NYC would be the easiest location technically to release a new service, and definitely not the easiest place to deal with potential glitches or customer issues. Why not try a smaller city that is more compact and has a lower profile? I'm no expert in such things, but wouldn't you want to test in say, Charlotte, Tallahassee, Austin or Tuscon before tackling NYC?


SW

Well said, Steve. Frustration seems to be the common theme with T-Mobile regarding 3G "anything". I'm in agreement with you about starting in a smaller market to work out the kinks, but apparently they thought otherwise.

I just hope this latest spectrum acquisition helps move them closer to a real 3G launch, but I'm not going to hold my breath waiting for it to happen.

[spleck]

Originally Posted by SteveW

T-Mobile's "3G rollout" is still in stealth mode. A few 3G (UMTS), but no HSDPA phones in its lineup. No 3G marketing, except for one press release from May. No announcements about 3G anywhere but in New York City.

I wouldn't have thought that NYC would be the easiest location technically to release a new service, and definitely not the easiest place to deal with potential glitches or customer issues. Why not try a smaller city that is more compact and has a lower profile? I'm no expert in such things, but wouldn't you want to test in say, Charlotte, Tallahassee, Austin or Tuscon before tackling NYC?

"Stealth mode"--I like that.

T-Mobile rolled out in NYC because of their spectrum crunch. They didn't have enough 1900 MHz spectrum to support their customers, so rolling out 3G on new 1700 MHz provided new spectrum to handle a portion of the load. Basically, the 3G data was just incentive to get people to buy AWS capable phones.