T-Mobile US looking to buy airwaves from Verizon - report

T-Mobile US is taking steps to improve its mobile network capacity with wireless airwaves it is looking to purchase from Verizon Wireless, a source familiar with the matter said on 19 November, reported Reuters. The process is in its early stages, but it has been confirmed that T-Mobile has approached Verizon about buying spectrum, according to the source, who asked not to be named. The source was not authorised to discuss the matter. T-Mobile US may pay up to USD 3 billion for the airwaves, which are not currently being used by Verizon, according to one analyst estimate. 

T-Mobile declined to comment but the company did say on 12 November, in its announcement of an equity offering to raise money for potential spectrum deals, that it was considering buying airwaves from a private party but did not name the potential seller. Verizon Communications, majority owner of Verizon Wireless, did recently indicate the company is considering selling its "A Block" airwaves in the 700 MHz frequency band that were not being used. 

The company attempted to sell the same spectrum in 2012, but Verizon Chief Financial Officer Fran Shammo said at an investor conference that it did not receive a bid that was high enough. Shammo said the company would not conduct a "fire sale" and that if it did not reach a deal that was appropriate, Verizon Wireless would instead use the spectrum. T-Mobile has raised USD 1.8 billion though sale of common stock and offered USD 2 billion in bonds on 18 November with the expected aim of funding future spectrum purchases.