T-Mobile, Verizon agree on wireless sale

[ComicalMoodyDan]

T-Mobile, Verizon agree on wireless sale
By Peter Svensson, Associated Press

NEW YORK – Verizon Wireless on Monday said that it has agreed to sell some wireless spectrum rights to T-Mobile USA and swap others, in a continuing quest to get regulators to approve a bigger spectrum deal it has worked out with a consortium of cable companies and another wireless carrier.

The deal with T-Mobile USA, which is a unit of Deutsche Telekom AG of Germany, would improve the ability of both companies to offer fast wireless data services, Verizon said. T-Mobile, the fourth-largest U.S. wireless company, is particularly starved for spectrum compared to its larger competitors, and regulators are likely to favor a deal that would improve its position.

Neither T-Mobile nor Verizon said what T-Mobile would pay Verizon for the spectrum.

The Verizon-T-Mobile deal is contingent on Verizon getting government approval for three deals to buy spectrum from cable companies and Leap Wireless for a total of about $4 billion. Those deals were struck in November and December, but have met resistance from public-interest groups who say the cellphone company, already the nation's largest, doesn't need more spectrum and shouldn't be cozying up to competitors such as the cable companies.

To get the three earlier deals through, Verizon has already offered to auction other airwaves it isn't using.

Cellphone companies need spectrum rights, or slots on the airwaves, to do business much like radio stations do. With the growth of wireless data use, cellphone companies have a newfound need for more spectrum. The amount of spectrum they have available in any area determines the maximum download speeds they can offer.

T-Mobile said the Verizon deal encompasses spectrum in 218 areas, and would improve its spectrum position in 15 of the top 25 markets in the U.S., notably Philadelphia, Washington, Detroit and Seattle.

T-Mobile hopes to put the spectrum to use as early as next year, if the Federal Communications Commission approves the deal this summer.

"This is good for T-Mobile and good for consumers because it will enable T-Mobile to compete even more vigorously with other wireless carriers," T-Mobile USA CEO Philipp Humm said, in a statement.

Verizon Wireless is a joint venture of Verizon Communications Inc. of New York and Vodafone Group PLC of Britain.

T-Mobile, Verizon agree on wireless sale

[Yugopro]

I read that it is the 1700 AWS for T-Mo, what does Verizon get besides money?
Not too much specific news.

[JFB]

Here is the text of the press release from VZW:

Verizon Wireless AND T-MOBILE USA AGREE TO TRANSFER SPECTRUM HOLDINGS

Agreement Enables LTE Expansion and Benefits Customers of Both Companies

BASKING RIDGE, NJ – Verizon Wireless today announced an agreement with T-Mobile USA to exchange specific spectrum in the AWS (Advanced Wireless Services) band. Under the agreement, both companies also will receive additional spectrum depth in specific markets to meet LTE (Long Term Evolution) capacity needs and enable LTE expansion. Since this agreement includes spectrum that will be purchased by Verizon Wireless in its transactions with SpectrumCo, Cox and Leap, this agreement is contingent on the closing of those transactions.

The agreement includes a number of intra-market spectrum swaps that will result in better use of the AWS band for both companies. The agreement also includes exchanges of spectrum between the companies in numerous markets which result in an overall net transfer of spectrum from Verizon Wireless to T-Mobile and a cash payment from T-Mobile to Verizon Wireless. Financial terms of the agreement are not being disclosed. The license transfers require FCC approval which is expected later this summer.

“The agreement with T-Mobile is further evidence of the importance of a secondary spectrum market to give companies the flexibility to exchange or acquire spectrum to meet customers’ growing demands for wireless data services,” said Dan Mead, president and CEO of Verizon Wireless. “The AWS licenses we’ll acquire from T-Mobile and through SpectrumCo, Cox and Leap will be used to add capacity to our 4G LTE network.”

The agreement between Verizon Wireless and T-Mobile is a private commercial arrangement that will allow both companies to optimize their respective spectrum holdings for LTE deployment and to meet their customers’ needs.

and the one from T-Mobile:

T-Mobile Signs Spectrum Agreement With Verizon Wireless

T-Mobile to Improve Portfolio of Nationwide Broadband Spectrum Following Regulatory Approval; Net Gain of Spectrum Will Assist Rollout of LTE in 2013

Bellevue, Wash. — Jun. 25, 2012 2012-06-26 16:14:59

Today, T-Mobile USA, Inc. announced an agreement with Verizon Wireless for the purchase and exchange of certain Advanced Wireless Services (AWS) spectrum licenses in 218 markets across the U.S. The transaction will improve T-Mobile’s spectrum position in 15 of the top 25 markets in the U.S. by providing an opportunity for T-Mobile both to acquire additional AWS spectrum and to realign its existing spectrum holdings. Following regulatory approval, this spectrum can be promptly deployed to enhance the company’s 4G mobile broadband service, including the rollout of LTE service next year. Some of the spectrum T-Mobile is acquiring in this transaction include licenses that Verizon is purchasing from SpectrumCo, Cox and Leap, and the agreement is contingent on the closing of those transactions and is subject to regulatory approval by the Federal Communications Commission (FCC) and the Department of Justice.

“This agreement will provide T-Mobile with critical AWS spectrum, enhancing both network capacity and performance and allowing us to meet the growing consumer demand for 4G mobile broadband,” T-Mobile CEO and President Philipp Humm said. “This is good for T-Mobile and good for consumers because it will enable T-Mobile to compete even more vigorously with other wireless carriers. We anticipate FCC approval later this summer, in time for us to incorporate this new spectrum into our network modernization and the rollout of LTE services next year.”

T-Mobile will gain spectrum covering 60 million people — notably in Philadelphia; Washington, D.C.; Detroit; Minneapolis; Seattle; Cleveland; Columbus, Ohio; Milwaukee; Charlotte, N.C.; Raleigh-Durham, N.C.; Greensboro, N.C.; Memphis, Tenn.; and Rochester, N.Y. — in exchange for spectrum covering 22 million people and certain cash consideration. The agreement also includes exchanges in a number of markets in which the companies will swap licenses to create more contiguous blocks of spectrum and re-align spectrum in adjacent markets. These intra-market swaps will enhance T Mobile’s network performance and data throughput in key locations. This agreement is in addition to T-Mobile’s previously announced $4 billion 4G network evolution plan, which includes modernization of 37,000 cell sites, launching 4G HSPA+ services in the 1900 MHz band and deployment of LTE in 2013.

[Yugopro]

Still no specific identification of the spectrum bands.

[Yugopro]

It is trading between blocks to make simple national coverage for carriers on the 1700 AWS spectrum.
Verizon and T-Mo will be the major players.

This is a really big deal.

Verizon will be a monster in spectrum.

[Yugopro]

This deal explains the rumors of the Metro PCS and T-Mo merger.

If T-Mobile bought Metro it would have gotten a lot of 1700 AWS spectrum in the Northeast REAG, where it was weak, and the whole West REAG.

If you research the 2006 AWS auction on Phonescoop, which this is all about, you will see the implications.