If you haven't been paying close attention to the mobile landscape, you may be missing the biggest spectrum-based turf war in ages. These days, it's a race to snap up spectrum, and as the old saying goes, the boys with the most, win. Cox Communications pondered a start in the telecom world once, but now they've decided that it's probably best to let the existing players play on. In turn, they're announcing plans to sell their wireless spectrum to Verizon for $315 million. Moreover, Cox and Verizon Wireless will become agents to sell each other's residential and commercial products.
The sale of Cox's AWS spectrum to Verizon
Wireless is an important step to ensure that consumers' growing demands for mobility will be met. This agreement does not include Cox's 700 MHz spectrum licenses, the company's Cox Wireless customer accounts or any other assets.Separately, Cox and Verizon Wireless will also become agents to sell each other's residential and commercial products and services through their respective sales channels. Over time, Cox may have the option to sell Verizon Wireless' services on a wholesale basis. In addition, Cox expects to enter into arrangements with the innovation technology joint venture formed by Verizon Wireless, Comcast, Time Warner Cable and Bright House Networks to better integrate wireline and wireless products and services.
"These agreements provide Cox customers with key enablers to mobility, such as access to Verizon Wireless' 4G LTE network and iconic wireless devices," said Pat Esser, president of Cox Communications. "We look forward to the many benefits this will bring to customers."
The sale and transfer of Cox's advanced wireless spectrum to Verizon Wireless is subject to approval by the Federal Communications Commission and review under the Hart-Scott Rodino Act and other customary conditions. Cox announced last month that it would no longer sell its Cox Wireless service, but would continue to provide service to its wireless customers through March 30, 2012.