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T-Mobile, Verizon Wireless Reached AWS Spectrum Agreement

As part of its preparation for 2013 LTE roll out, T-Mobile reached an agreement with Verizon Wireless to purchase and exchange certain AWS (Advanced Wireless Service) spectrum licenses that would bring the company just what it needs to widen and make better its reach and coverage.

In an official press release, it was stated that this acquisition will put T-Mobile on the 15th spectrum position in the top 25 markets inside the United States (US). The spectrum could immediately be deployed after regulatory approval. This will add to the current holdings of the company and apparently enhance its 4G mobile broadband service.

Verizon Wireless will be giving away spectrum it has purchased from Cox, SpectrumCo and Leap. However, it will still pass through regulatory approval by the Department of Justice and the Federal Communications Commission (FCC). Philipp Humm, T-Mobile President and CEO, said of the advantages its company could take advantage of from this transaction.

“This agreement will provide T-Mobile with critical AWS spectrum, enhancing both network capacity and performance and allowing us to meet the growing consumer demand for 4G mobile broadband,” Humm said.

While the company has already a wide coverage, this spectrum will add up 60 million people under its brand from the following areas;

  • Philadelphia
  • Washington D.C.
  • Detroit
  • Minneapolis
  • Seattle
  • Cleveland
  • Columbus
  • Milwaukee
  • Charlotte
  • Raleigh-Durham
  • Greensboro
  • Memphis
  • Rochester

In exchange for the spectrum covering 60 million people, T-Mobile will have to let go of its spectrum that covers around 22 million people plus some undisclosed cash. This transaction is not limited to such exchanges, though, because there would be a number of markets that these companies have agreed to swap licenses with. This will give both companies big opportunities to re-align their respective spectrums for the markets they set their focus on.

T-Mobile, however, stated that this will be a great help for its growth in the US soil. It has already announced that a $4 billion plan would soon be realized together with the modernization of some 37,000 cell sites to offer 4G HSPA+ connectivity specifically in the 1900 MHz band, as well as the deployment of LTE next year.