T-Mobile US buys wireless spectrum from US Cellular
T-Mobile US has spent a reported $308 million on 10MHz of wireless spectrum from US Cellular.
The spectrum covers the Mississippi Valley region and T-Mobile expects it to allow for the expansion of its 4G LTE network.
“In today’s marketplace, spectrum is gold,” John Legere, CEO at T-Mobile, told reporters.
"This is a rare opportunity to secure precious AWS spectrum in key markets that will immediately be put to use by both T-Mobile and MetroPCS customers.”
The deal will see T-Mobile expand its network to 29 markets – including St. Louis, Nashville, Kansas City, Memphis and New Orleans – covering a total of 32 million people.
“We're pleased to have achieved significant value for this spectrum licence, as we continue to evaluate opportunities to create additional value for our shareholders,” said Kenneth Meyers CEO at US Cellular.
The deal is subject to approval from the Federal Communications Commission and Department of Justice, and is expected to close in Q4 of 2013.
Earlier this year it was reported that the US government was monitoring T-Mobile US’ and Verizon Wireless’ activity, which both companies denied.