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Verizon Scores AWS Spectrum for $3.6 Billion

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Wow

Rich Brome

Dec 2, 2011, 9:52 AM
This is a pretty big deal. It will give Verizon a huge, huge competitive advantage in myriad ways. They will be able to do things with 4G that other carriers can only dream of. They will also have complete flexibility to roll out VoLTE and eventually transition away from CDMA at absolutely whatever pace they like.
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Versed

Dec 2, 2011, 10:26 AM
Of course this is perfectly OK for VZW to do this, don't see charts, maps and other diagrams on just how much spectrum VZW owns and uses or doesn't use. Such treatment is only reserved for AT&T. Everyone else gets a free pass on unused or spectrum hording.
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terryjohnson16

Dec 2, 2011, 10:33 AM
The reason why att would not get this is because they just bought 700mhz spectrum from qualcomm. Fcc approved that. If att did this deal too it would be greedy of them.

Verizon will get this deal done because they arent trying to buy another national carrier such as sprint for spectrum.

Att is getting hit because they want 700 from qualcomm and tmobiles network which would make them the sole gsm/hspa provider in the us.

Att could have done this deal instead and came out on top instead of spending 13x that of what they are trying to pay for tmobile.
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bigdaddyjay

Dec 2, 2011, 12:02 PM
They key is the fact that a competing national provider utilizing spectrum is not really being eliminated. These companies obviously are getting a good price for their spectrum and forging a business bond that will help all companies involved. There might even be some job creation as new technology evolves with this spectrum.
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Jayshmay

Dec 2, 2011, 10:29 AM
Can you give some examples of what Verizon will be able to do with LTE that other carriers won't?
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terryjohnson16

Dec 2, 2011, 10:37 AM
Right now verizon has nationwide 700 spectrum, but only half aws. Tmobile has the nationwide aws spectrum. Buy buying this new spectrum from spectrumCo, they will have nationwide aws spectrum as well.

This is what att is trying to accomplish by buying tmobile. Att has half the 700 and aws spectrum while verizon has the
other half.

They can hopefully offer true video calling and unlimited with out saying they strapped for spectrum and capacity.
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Jayshmay

Dec 2, 2011, 10:52 AM
What do you mean by true video calling? Is it choppy or something? I don't have any experience with video calling. My teenage crush, who still lives back home in Ct wants me to video chat. So I'm going to try to figure Android-to-pc video calling this weekend.
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terryjohnson16

Dec 2, 2011, 11:01 AM
Many people cant video call on a phone like they do on their pc because the carriers put data limits due to capacity. If everyone started video calling now on a phone, the carriers would say its hurting their network due to lack of enough spectrum and backhaul.

More spectrum gives better flexibility on what u can offer the customers without worrying about killing the network with congestion.

Tmobile faced this issue before they got aws spectrum in 2006. They couldnt launch 3g with their congested pcs 1900 spectrum. it would have hurt their current 2g network. Att and verizon was able to lauch 3g on top of 2g using the same 850 and 1900 spectrum cause they had plenty. But now att and verizon cant run 4g lte on their congested 850 / 19...
(continues)
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Jayshmay

Dec 2, 2011, 11:08 AM
I get between 6-9mbps upload speeds, on Vzn LTE, isn't 1-1.5 sufficient for video calling?
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Versed

Dec 2, 2011, 10:41 AM
Jay,
Horde it? Well hopefully they have a plan to use it with LTE similar to what AT&T plans to do.
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WiWavelength

Dec 2, 2011, 10:50 AM
Once the AT&T-T-Mobile merger is finally kaput, T-Mobile was likely to make a play for this nearly nationwide collection of AWS 2100+1700 MHz licenses from SpectrumCo. So, this was a preemptive strike by VZW.

AJ
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terryjohnson16

Dec 2, 2011, 11:03 AM
I think they did it to block att just in cause att tried to go after it pending a failed attempt to buy tmobile.
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Jayshmay

Dec 2, 2011, 11:57 AM
Damn your smart!
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Slammer

Dec 2, 2011, 12:48 PM
---" So, this was a preemptive strike by VZW."---

Very cunning to say the least. I did not see this coming. This would explain VZW's somewhat silent treatment during the merge proceedings.

In many aspects, this is going to be almost as significant in dampening competition. I fear a great pressure on Sprint and lower tier carriers to elevate their branding status amoung the consumers. Let's hope Sprint can retain their last remaining asset with their partnership in Clear, and pool their spectrum allotments. This is where the rubber meets the pavement.

John B.
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WiWavelength

Dec 2, 2011, 1:18 PM
As a follow up, this is what I wrote on another site:

"...this move by VZW blocks several potential “Plan Bs” for T-Mobile if the merger disintegrates. The SpectrumCo + Cox AWS licenses are nearly nationwide (the only major markets missing are Buffalo, Cincinnati, St. Louis), and a still independent T-Mobile could have acquired this spectrum for additional HSPA+ capacity, LTE, or both. Alternatively, T-Mobile, instead of VZW, could have been the carrier to strike a partnership with the cable companies. Or, lastly, Comcast and/or Time Warner might have fully acquired T-Mobile. But those options are likely off the table now.

"The timing of this move by VZW — coming just a day after Sprint and Clearwire seem to have fin...
(continues)
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Versed

Dec 2, 2011, 6:32 PM
AJ and they can get Clear for pennies on the dollar if this should occur.
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Versed

Dec 2, 2011, 6:31 PM
John,
This is why I may disagree on some thing with you, but I have to say, at least you're consistent.
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yarmock

Dec 2, 2011, 7:25 PM
Why wouldn't Sprint just buy Clearwire? They are dumping so much into them, why not just buy the cow instead of overpaying for the milk?
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DAntiVirus

Dec 2, 2011, 8:08 PM
I think the reason is that they have drained so much of their cash reserves with the IPhone deal that they just didn't have the free funds to buy them.
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rawvega

Dec 5, 2011, 9:15 AM
Most likely because they don't want to take Clearwire's debt onto their books.
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