AT&T Acquires 42 Million Customers From Verizon 3 Days After Buying Alltel

AT&T has announced plans to purchase wireless spectrum bandwidth from Verizon Wireless, it’s number one competitor.

The purchase includes spectrum from the 700 MHz band, as well as AT&T’s giving Verizon Wireless spectrum licenses from Advanced Wireless Services (AWS) in several markets, including Phoenix, AZ, Los Angeles and Fresno, CA,and Portland, OR.

Additionally, AT&T will pay Verizon Wireless $1.9 billion in cash.

AT&T’s purchase of the licenses will effect 42 million customers in 18 states – CA, CO, FL, ID, IL, LA, MT, NM, NY, OH, OK, SD, TN, TX, UT, VA, WA, and Wyoming.

Once again, as with yesterdays acquisition of Alltel, the purchase of the Verizon spectrum will compliment AT&T’s current spectrum bandwidth, and will be more easily integrated into AT&T’s current GSM mobile operating radio technology.

It will allow AT&T to expand the current marketplace for its own 4G LTE network, projected to reach as many as 300 million people by December 2014.

The agreement and any subsequent transactions with relationship to AT&T’s purchase of spectrum from the Verizon Wireless network are subject to review and approval by the Federal Communications Commission (FCC) and the Department of Justice (DOJ).

Jim Donahue

Sources / Links / References

http://www.att.com/gen/press-room?pid=23682&cdvn=news&newsarticleid=35959&mapcode=corporate|financial