Summary
AT&T Inc. (T) announced a significant spectrum acquisition on September 10, 2013, purchasing 700 MHz B band spectrum from Verizon Wireless for $1.9 billion in cash. This strategic move significantly expands AT&T's spectrum holdings, covering approximately 42 million people across 18 states. The acquisition is expected to enhance AT&T's network capacity and potentially improve service quality and coverage for its customers, particularly in these targeted regions.
Key Highlights
- 1AT&T acquired 700 MHz B band spectrum from Verizon Wireless for $1.9 billion cash.
- 2The acquired spectrum covers 42 million people across 18 states, including key markets like California, Texas, and New York.
- 3AT&T also transferred AWS spectrum licenses in five markets as part of the transaction.
- 4The company anticipates recording a benefit of approximately $225 million from the transfer of AWS licenses.
- 5This acquisition is aimed at bolstering AT&T's network capabilities and future growth potential.
- 6The transaction was officially announced on September 10, 2013.
Frequently Asked Questions
The primary purpose was to acquire valuable 700 MHz B band spectrum, which is crucial for expanding and enhancing AT&T's wireless network capacity and coverage across 18 states.
AT&T paid $1.9 billion in cash to Verizon Wireless for the 700 MHz B band spectrum.
AT&T expects to record a benefit of approximately $225 million from the transfer of its Advanced Wireless Services (AWS) spectrum licenses in five markets.
The newly acquired 700 MHz spectrum covers approximately 42 million people across 18 states, including California, Colorado, Florida, Illinois, New York, Ohio, Texas, and Washington, among others.