FCC: Go ahead, Verizon, buy your spectrum
23rd Aug 2012 | 22:48
$3.9 billion deal approved
The Federal Communications Commission approved Verizon's bid to buy up AWS spectrum licenses Thursday, opening the door for the U.S.'s largest cellular carrier to further support its LTE capacity.
According to a company media release, the deal is between Verizon, SpectrumCo and Cox Communications.
The FCC also gave the thumbs up for Verizon to complete transactions with Leap Wireless, Savary Island Wireless and T-Mobile.
Price of greater connectivity
SpectrumCo, a joint venture between Comcast, Time Warner Cable and Bright House Networks, Cox and the various wireless carriers can now sell their unused spectrum to Verizon in a deal that'll cost $3.9 billion thanks to the FCC's approval.
"Verizon Wireless will use the spectrum it's acquiring in these transactions in conjunction with its 700 MHz upper C band spectrum to deploy additional LTE capacity," the company said in the release.
Calling the deal an industry "milestone," Verizon President and CEO Dan Mead praised the FCC's process and ultimate decision.
"We will work aggressively to ensure that we put this previously unused spectrum to use quickly to benefit customers," he said in the release.
That's not all
The deal also lets Verizon offload through sale its 700 MHz lower A and B block spectrum licenses.
Mead said more than 65 parties expressed interest in these lower-end bands.
With the acquisition, Verizon said the improvements to its 4G LTE network can better meet the ever-growing data needs of its consumers.
TechRadar reported recently that 75 percent of the U.S. population falls under its 4G LTE network.
According to the release, the FCC estimates the industry demand for mobile data in 2015 will be 25 to 50 times greater than it was in 2010 as consumers use more data-intensive devices.
T-Mobile had initially lobbied the FCC in opposition of the deal, but quickly changed its tune once Verizon and it came to agreeable terms, part of which include allowing T-Mobile to trade spectrum bands with Verizon.