You’ve got to hand it to T-Mobile and Verizon— each wireless carrier is positioning itself to have the best wireless technology possible for its customers. Both carriers signed a landmark AWS spectrum purchase and exchange agreement. For T-Mobile specifically, the deal would allow it to acquire additional spectrum, while simultaneously realigning its current spectrum holdings. The deal would cover 15 markets and allow T-Mo to grab spectrum which covers over 60 million people. If or when the deal is approved by the FCC, this technology will allow T-Mo to use the spectrum for it’s existing 4G HSPA+ network as well as its upcoming LTE-Advanced network, which of course is due next year. Don’t think Verizon is left cut and dry from this deal too as it too gets what it’s ultimately looking for. For Big Red, it’ll stand to gain spectrum from T-Mo which covers 22 million people and “cash consideration” from this deal.
While this deal is indeed exciting, it could possibly face numerous challenges or obstacles which could prevent it from going through. The biggest issue is well, the FCC has to ok the deal first and you can bet the FCC certainly hasn’t forgotten about a certain deal T-Mobile was recently part of. The second is some of the spectrum is owned by SpectrumCo, Cox and Leap— and those individual deals must be approved first before T-Mo’s part can go through. Still, you can’t not be excited at the prospect of T-Mobile’s seemingly inevitable growth. After all, it is seeing the “modernization of 37,000 cell sites, launching 4G HSPA+ services in the 1900 MHz band and deployment of LTE in 2013″.
Hit the break to see the full presser from T-Mobile.
BELLEVUE, Wash., Jun 25, 2012 (BUSINESS WIRE) — –Net Gain of Spectrum Will Assist Rollout of LTE in 2013
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.
About T-Mobile USA:
Based in Bellevue, Wash., T-Mobile USA, Inc. is the U.S. wireless operation of Deutsche Telekom AG (otcqx:DTEGY). By the end of the first quarter of 2012, approximately 129 million mobile customers were served by the mobile communication segments of the Deutsche Telekom group — 33.4 million by T-Mobile USA — all via a common technology platform based on GSM and UMTS and additionally HSPA+ 21/HSPA+ 42. T-Mobile USA’s innovative wireless products and services help empower people to connect to those who matter most. Multiple independent research studies continue to rank T-Mobile USA among the highest in numerous regions throughout the U.S. in wireless customer care and call quality. For more information, please visit http://www.T-Mobile.com . T-Mobile is a federally registered trademark of Deutsche Telekom AG. For further information on Deutsche Telekom, please visit www.telekom.de/investor-relations .
SOURCE: T-Mobile USA, Inc.
Media Contacts: T-Mobile USA Media Relations (425) 383-4002 [email protected]