T-Mobile Buys $2.4 Billion Worth of Spectrum From Verizon

In efforts to rise up from its number 4 slot as the US largest wireless carrier they have purchased a bulk of spectrum from the largest carrier in the Unite States, Verizon Wireless, to improve service in many areas.

For 2.4 billion the agreement between T-Mobile and Verizon will provide both companies with better service in areas of focus. According to T-Mobile they received 700-megahertz A-block spectrum licenses from Verizon. On the other end, Verizon will get so-called AWS and PCS licenses, which have

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a combined value of about $950 million.

What does this deal mean for T-Mobile? Well now the stakes are raised if their competitors are still interested in taking over the wireless provider. In recent years, companies like Sprint Corp. have been in talks about a possible takeover of T-Mobile. In a recent interview, Markus Friebel, an analyst at Independent Research GmbH in Frankfurt. SoftBank Corp. discussed a possible takeover of T-Mobile. The new deal with Verizon, “will make T-Mobile a more viable operator, but also a more attractive acquisition target,” said Friebel.

T-Mobile Chief Operating Officer Jim Alling pointed out that low-band frequencies is a spectrum the company has been missing for some time now so this deal was perfect for the companies future goals.


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