It’s not the UnCarrier announcement we’re waiting for, but its a good one nonetheless. T-Mobile has announced that they will be purchasing some spectrum from Verizon Wireless. T-Mobile will be spending $2.365 billion in cash to purchase certain 700 MHz A-Block spectrum licences from Verizon. The deal will also see T-Mobile transfer some AWS and PCS spectrum licences to Verizon.
This is a huge move for T-Mobile, who clearly stole the show in 2013 by single-handedly re-making the way mobile carriers charge for services as well as devices. T-Mobile will now be able to offer 4G in more areas around the country, and speeds will be boosted in current areas as well.
That’s not all T-Mobile has in store for us at CES; the company is expected to roll out the next phase in their UnCarrier program.
The spectrum changes will go into effect in mid-2014.
T-Mobile to Acquire 700 MHz A-Block Spectrum from Verizon Wireless, Significant Step in Rapidly Advancing Un-carrier Network Experience
Low-band spectrum covering approximately 150 million people will further improve customer experience in major metro areas, boosting in-building and breadth of network coverage
January 06, 2014 07:00 AM Eastern Standard Time
BELLEVUE, Wash.–(BUSINESS WIRE)–T-Mobile US, Inc. (NYSE: TMUS) today announced that its wholly-owned subsidiaries T-Mobile USA, Inc. and T-Mobile License, LLC have signed agreements to purchase certain 700 MHz A-Block spectrum licenses from Verizon Wireless for $2.365 billion in cash and the transfer of certain AWS and PCS spectrum licenses, which have an aggregate estimated value of approximately $950 million. The transactions, combined with T-Mobile’s existing A-Block holdings in Boston, will result in T-Mobile having important low-band spectrum in 9 of the top 10 and 21 of the top 30 markets across the United States.
“This is a great opportunity to secure low-band spectrum in many of the top markets in America”
“This is a great opportunity to secure low-band spectrum in many of the top markets in America,” said John Legere, President and CEO of T-Mobile. “These transactions represent our biggest move yet in a series of initiatives that are rapidly expanding our already lightning fast network and improving its performance across the country. We will continue to find ways to advance our customers’ network experience just as our bold Un-carrier moves have shaken up the wireless industry to benefit consumers.”
These are significant transactions that will further enhance a rapidly improving network experience that T-Mobile expects will create shareholder value. Low-band spectrum substantially improves in-building coverage as well as coverage in rural areas. It also travels greater distances than high-band spectrum and therefore is a more efficient way to provide coverage at the edge of cities and in less densely populated areas. Combined with its existing Boston A-Block holdings, T-Mobile will have low-band spectrum covering approximately 158 million people — including New York, Los Angeles, Dallas, Houston, Philadelphia, Atlanta, Washington D.C., and Detroit. T-Mobile anticipates rolling out service and compatible handsets on this A-Block spectrum as early as the fourth quarter of 2014.
In 2013, T-Mobile continued its rapid LTE rollout, deploying 10+10 MHz 4G LTE in 43 of the top 50 metro areas and it is commencing substantive deployments of 20+20 MHz 4G LTE in 2014. The company launched its nationwide 4G LTE network in 2013, which currently covers approximately 209 million people in 273 metro areas.
Also, as part of the transaction, the two companies will realign spectrum blocks in certain markets, primarily in northern California and the Atlanta area.
The agreements are subject to approval by the Federal Communications Commission and the Department of Justice, and other customary closing conditions. Following regulatory approval, these transactions are expected to close in mid-2014.
TAP Advisors worked as financial advisors for T-Mobile on this transaction.
A-Block Spectrum Conference Call
T-Mobile US, Inc. (NYSE: TMUS) will host a conference call to discuss the A-Block transaction on Monday, January 6, 2014 at 11:00 a.m. Eastern Standard Time (EST). Supplementary slides for the conference call will be posted to the T-Mobile Investor Relations website at approximately 7:00 a.m. EST.
T-Mobile Conference Call Information:
Date: Monday, January 6, 2014
Time: 11:00 a.m. (EST)
Call-in Numbers: 800-432-9830
Participant Passcode: 1719015
Please plan on accessing the conference call ten minutes prior to the scheduled start time. The conference call will be broadcast live via the Company’s Investor Relations website at http://investor.t-mobile.com.
A replay of the conference call will be available for two weeks starting shortly after the call concludes and can be accessed by dialing 888-203-1112 (toll free) or 719-457-0820 (international). The passcode required to listen to the replay is 1719015.