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article imageAT&T buys Verizon Wireless spectrum for $1.9 billion

By Milton Este     Jan 25, 2013 in Technology
Wireless mobile phone service provider AT&T is making a very big investment, $1.9 billion to be exact. This deal takes place with the biggest network providers by subscriber - Verizon Wireless.
It's no surprise AT&T needs to step up to its game with something big and customer service oriented. Latest reports by PissedConsumers shows 1,694 complaints registered against them compared to 137 regarding Verizon Wireless, 232 with T-Mobile, and 186 with Sprint.
It looks like AT&T is desperately trying to gain some ground by contracting the Verizon Wireless spectrum. A look at Verizon's Corporate site reveals that the contract will cover the followings:
1. Verizon Wireless will sell 39 lower 700 MHz B Block licenses (listed below) to AT&T in exchange for a payment of $1.9 billion, and the transfer by AT&T to Verizon Wireless of AWS (10 MHz) licenses in certain western markets, including Los Angeles, Phoenix, Fresno and Portland, Oregon.
2. Verizon Wireless will sell lower 700 MHz B Block licenses covering the Charlotte, Greensboro and Raleigh-Durham markets in North Carolina to Grain Management, a Sarasota, Florida-based private equity firm that invests in the telecommunications sector, in exchange for a payment of $189 million.
3. Verizon Wireless will lease from Grain Management an AWS license covering Dallas, Texas, which Grain is acquiring from AT&T.
The reason for this acquisition is answered by FOX Business Network:
The need for spectrum among wireless carriers has increased because of the explosive demand for mobile data and the need to build faster networks to accommodate smartphones. Airwaves for wireless signals are controlled by the government, and are licensed by telecom carriers and broadcasters. Spectrum access can determine a carrier's coverage, service quality and, ultimately, its competitiveness.
As the usage of cellular phones, tablets, laptops, and other mobile devices increase, so does the need for a network. These rival companies are looking at gaining market share and customers by these acquisitions.
However, another spectrum will not increase AT&T's feedback and customer satisfaction. A new stream of customers don't guarantee anything especially as more experience first hand of their service quality.
More about Att, At&t, Discovery, Wireless, spectrum
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