Summary
AT&T Inc. (T) announced a significant spectrum acquisition from Verizon Wireless for $1.9 billion in cash, along with a contribution of AWS spectrum licenses. This strategic move aims to bolster AT&T's 700 MHz B band holdings, a crucial component for its 4G LTE network expansion. The acquired spectrum covers approximately 42 million people across 18 states, directly supporting AT&T's goal of reaching 300 million people in the U.S. with its 4G LTE network by the end of 2014. This acquisition is investor-focused as it demonstrates AT&T's commitment to enhancing its mobile data infrastructure and meeting the growing demand for high-speed mobile internet. The addition of this spectrum is expected to improve network capacity and performance, potentially leading to better customer experience and continued market leadership in the 4G LTE space. Investors should note that the transaction is subject to regulatory approval and is anticipated to close in the second half of 2013.
Key Highlights
- 1AT&T to acquire 700 MHz B band spectrum from Verizon Wireless for $1.9 billion cash.
- 2Transaction includes a contribution of Advanced Wireless Services (AWS) spectrum licenses in five markets.
- 3Acquired spectrum covers 42 million people across 18 states, significantly expanding AT&T's 4G LTE footprint.
- 4Acquisition complements existing 700 MHz B band holdings, supporting 4G LTE deployment.
- 5Aims to help AT&T achieve its goal of reaching 300 million people with its 4G LTE network by end of 2014.
- 6Transaction is subject to regulatory approval.
- 7Anticipated closing of the transaction in the second half of 2013.