AT&T agrees to purchase 700MHz spectrum from Verizon to aid in its 4G LTE rollout

Published: January 25, 2013

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What better way to start your Friday morning than with some spectrum swap news, right? AT&T and Verizon Wireless announced this morning that they've entered into an agreement that'll see AT&T gaining 39 lower 700MHz B Block spectrum licenses from Verizon. In exchange, AT&T will be handing over $1.9 billion in cash and some AWS licenses in markets like Phoenix, Ariz., Los Angeles and Fresno, Calif., and Portland, Ore. The 700MHz spectrum licenses that AT&T will be receiving cover 42 million people in the following 18 states: California, Colorado, Florida, Idaho, Illinois, Louisiana, Montana, New Mexico, New York, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, Virginia, Washington and Wyoming. At the bottom of this post is a full list of the 39 markets where AT&T is gaining 700MHz licenses.

This isn't the first time that AT&T has struck a deal to grab more 700MHz spectrum, and the carrier's CEO even expressed interest in buying Verizon's 700MHz spectrum last year. AT&T says that today's deal will help in its rollout of 4G LTE service, which is exciting news for the AT&T customers that are located in the markets where the big blue carrier is gaining 700MHz spectrum licenses. Of course, it'll be a while before AT&T can really do anything with these spectrum licenses since the transaction must first go through the usual regulatory hurdles. AT&T expects that the deal will close in the second half of 2013.

In addition to this spectrum deal with Verizon, AT&T has announced that it's selling a single AWS license to the Florida-based equity firm Grain Management and will also lease some 700MHz spectrum to the company in three markets. Grain Management is also buying some lower 700MHz B Block licenses from Verizon in the Charlotte, Greensboro and Raleigh-Durham markets for $189 million. Verizon will then be leasing a lone AWS license from Grain Management that covers Dallas, Texas, which is actually the AWS license that Grain is getting from AT&T. 

  • Alexandria, La.
  • Billings, Mont.
  • Bradenton, Fla.
  • Casper, Wyo.
  • Chicago, Ill.
  • Cincinnati, Ohio
  • Fort Collins, Colo.
  • Great Falls, Mont.
  • Lake Charles, La.
  • Longview, Texas
  • Los Angeles, Calif.
  • Memphis, Tenn.
  • Miami, Fla.
  • Oklahoma City, Okla.
  • Pueblo, Colo.
  • Rapid City, S.D.
  • Rochester, N.Y.
  • Texarkana, Texas
  • Tyler, Texas
  • Waco, Texas
  • West Palm Beach, Fla.
  • Youngstown, Ohio
  • Colorado 4
  • Idaho 5
  • Louisiana 1, 2 and 3
  • Montana 8 and 9
  • New Mexico 5
  • South Dakota 1
  • Texas 18
  • Utah 1, 4, 5 and 6
  • Virginia 10
  • Washington 2
  • Wyoming 2

Via AT&T, Verizon Wireless

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