Verizon acquires spectrum from Cincinnati Bell
Cincinnati Bell is set to quit the mobile phone market after Verizon Wireless struck a deal to acquire its spectrum for $210 million.
Cincinnati Bell Wireless (CBW) operates as the ninth-largest wireless carrier in the US, and will sell the wireless spectrum licences in the PCS, AWS and 700MHz spectrum bands in Ohio for a reported $194 million in cash.
The deal is expected to close in the second half of 2014, with Verizon also set to assume responsibility for certain tower lease obligations.
CBW has stated that it will continue to offer wireless services while the deal proceeds and customers are not required to take any action at the moment.
“We appreciate the loyal support from our Cincinnati Bell Wireless customers over the last 16 years, and remain committed to providing them with wireless service and support throughout this transition period,” said Ted Torbeck, CEO at Cincinnati Bell.
The company is now expected to increase its focus on a growing strategic product base, and reportedly took the decision to sell because it could not afford to invest in LTE.
Torbeck added that the deal “not only ensures customers have access to top-tier wireless service, but it also gives us increased flexibility to meet their growing demand”.
AT&T has also been active in securing spectrum by consolidating with smaller players, and closed a deal to acquire Leap Wireless this month.
Verizon said it will give private equity partner Grain Management the rights to acquire the spectrum from CBW, and will lease the licences from the financial firm once the deal closes.