Verizon Scores AWS Spectrum for $3.6 Billion
Verizon Wireless today announced that it has agreed to purchase 122 Advanced Wireless Services spectrum licenses covering 259 million POPs for $3.6 billion from SpectrumCo. SpectrumCo is a joint venture between Comcast, Time Warner Cable, and Bright House Networks. Comcast owns 63.6% of SpectrumCo and will receive $2.3 billion from the sale; Time Warner Cable owns 31.2% and will receive $1.1 billion; and Bright House Networks owns 5.3% and will receive $189 million. The companies have agreed to resell Verizon's products and services to their own customers rather than create and run their own wireless network. They also set up an innovation joint venture to explore how best to integrate wireless and wireline services in the future. AWS spectrum lays in the 1700MHz band. Verizon Wireless's CDMA network runs on the 850MHz and 1900MHz PCS bands, and its LTE network operates on 700MHz spectrum. Verizon has not said what it intends to do with this new spectrum, other than to offer "even better 4G LTE products and services" to Americans. Verizon didn't say when it expects the deal to close, and it has to pass regulatory approval, first.
Verizon Might Skip 600MHz Incentive Auction
Verizon Wireless said it is comfortable with its spectrum holdings at the moment and may not bid in next year's auction for 600MHz airwaves. Verizon is only using 40% of its licensed spectrum for LTE, which gives it plenty of room to add capacity.
AT&T to Buy Time Warner for $85.4 Billion
AT&T has agreed to purchase Time Warner for $85.4 billion in a stock-and-cash deal that will merge AT&T's delivery networks with Time Warner's vast catalog of content. AT&T believes the combined companies will be able to save $1 billion per year once fully merged.
Verizon and T-Mobile Agree to $173M Spectrum Swap
Verizon Wireless and T-Mobile have agreed to exchange AWS-1 and PCS spectrum in dozens of markets around the country in a deal valued at $173 million. The spectrum in question covers portions of Arkansas, California, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New York, North Dakota, Ohio, Pennsylvania, South Dakota, Tennessee, and Virginia.
Verizon Picks Up XO's Fiber Network to Beef Up Backhaul
Verizon Communications today said it has agreed to acquire XO Communications' fiber business for $1.8 billion. The deal, says Verizon, will help it serve its enterprise and wholesale customers, as well as allow Verizon to further densify its cellular network.
Dish's Designated Entities Give Up 197 Spectrum Licenses
Northstar Wireless and SNR Wireless LicenseCo surrendered 197 AWS-3 spectrum licenses and paid a $413 million fine to the FCC for defaulting on their $3.3 billion payment. Dish Networks participated in this year's auction through Northstar and SNR.