AT&T Spend 1.9 Billion Dollars to Expand 4G LTE Network
AT&T is working quickly to roll out 4G LTE to more areas across the United States so much so that it was willing to part with $1,900,000,000 USD to make it happen. A press release was put out announcing that AT&T bought enough 700MHz band from Verizon to bring 4G LTE to 42 million more people in 18 states for a cool 1.9 Billion dollars. This move was made necessary by the blocked sale of T-Mobile to AT&T last year.
While this transaction is expected to take a while to pass regulations (transaction is expected to be complete in the second half of 2013.) there is no problems foreseen in it doing so. You can check out the full press release below:
AT&T Agrees to Acquire 700 MHz Spectrum from Verizon Wireless
Dallas, Texas, January 25, 2013
AT&T* announced in an 8-K filing today that it has agreed to acquire spectrum in the 700 MHz B band from Verizon Wireless for $1.9 billion in cash and Advanced Wireless Services (AWS) spectrum licenses in several markets, including Phoenix, Ariz., Los Angeles and Fresno, Calif. and Portland, Ore.
The 700 MHz licenses to be acquired by AT&T cover 42 million people in 18 states - California, Colorado, Florida, Idaho, Illinois, Louisiana, Montana, New Mexico, New York, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, Virginia, Washington and Wyoming.
This acquisition complements AT&T’s existing holdings in the 700 MHz B band and will allow AT&T to continue to quickly deploy 4G LTE services to meet demand for mobile Internet services on a wide array of smartphones, tablets and other devices. The company announced in November 2012 that it plans to reach 300 million people in the U.S. with its 4G LTE network by the end of 2014.
In conjunction with this transaction, AT&T will sell to Grain Management a single AWS license and will lease 700 MHz spectrum from Grain Management in three markets.
The transaction is subject to regulatory approval. AT&T anticipates closing the transaction in the second half of 2013.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
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