Verizon buys mobile spectrum from cable cos for USD 3.6 bln

News Wireless United States 5 DEC 2011
Verizon buys mobile spectrum from cable cos for USD 3.6 bln
SpectrumCo, a joint venture between US cable operators Comcast, Time Warner Cable and Bright House Networks, has agreed to sell its 122 Advanced Wireless Services spectrum licences to Verizon for USD 3.6 billion. The spectrum covers 259 million people in the US. Comcast owns 63.6 percent of SpectrumCo and will receive approximately USD 2.3 billion from the sale, Time Warner Cable owns 31.2 percent and will receive USD 1.1 billion, and Bright House Networks owns 5.3 percent and will receive USD 189 million. The companies also have entered into several agreements providing for the sale of various products and services. Through these agreements, the cable companies and Verizon Wireless will become agents to sell one another's products and, over time, the cable companies will have the option of selling Verizon Wireless' service on a wholesale basis. The cable companies and Verizon Wireless also formed a technology joint venture for the development of technology to integrate wireline and mobile products and services. SpectrumCo's sale and transfer of its mobile spectrum to Verizon Wireless is subject to approval by the Federal Communications Commission.

Categories:

Mobile

Companies:

Comcast,  Time Warner Cable,  Verizon,  Bright House Networks

Countries:

United States

Tags:

Government telecommunications licensing, Cooperations & alliances, Wireline, Wireless, Cable - Docsis, Wholesale, 4G - LTE, M&A buyouts & divestments

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