T-Mobile, a holding company for Deutsche Telekom AG’s various mobile communications subsidiaries has agreed to the procurement of airwaves wireless from the largest U.S. wireless carrier ,Verizon, costing $2.4 billion in cash as part of a spectrum swap which will boost the network capacity of both firms in required areas.
According to a statement released on Monday, T-Mobile, which is the fourth-largest wireless carrier in the U.S, will procure 700-megahertz A-block spectrum licenses from Verizon.
While the pact will provide T-Mobile with a huge chunk of low-band frequencies which according to the Chief Operating Officer, Jim Alling was missing from its network coverage, Verizon, will get so-called AWS and PCS licenses, which have a combined value of about $950 million.
Markus Friebel, An analyst at Independent Research GmbH in Frankfurt. SoftBank Corp, said the transaction also may make T-Mobile a more attractive buy over target.
The deal “will make T-Mobile a more viable operator, but also a more attractive acquisition target,” Friebel said in an interview.