T-Mobile, Verizon Wireless Sign Deal to Swap Spectrum

Rivals T-Mobile and Verizon Wireless have inked a deal to exchange spectrum in the Advanced Wireless Services (AWS) band in 218 markets across the U.S. The mutually beneficial deal will improve T-Mobile's spectrum position in 15 of the top 25 markets throughout the country as it looks to launch 4G LTE service next year, in exchange for spectrum covering 22 million people and "certain cash considerations" paid to Verizon.

"This agreement will provide T-Mobile with critical AWS spectrum, enhancing both network capacity and performance and allowing us to meet the growing consumer demand for 4G mobile broadband," T-Mobile CEO and President Philipp Humm said. "This is good for T-Mobile and good for consumers because it will enable T-Mobile to compete even more vigorously with other wireless carriers. We anticipate FCC approval later this summer, in time for us to incorporate this new spectrum into our network modernization and the rollout of LTE services next year."

The spectrum T-Mobile gains will cover 60 million people, notably those living in Philadelphia; Washington, D.C.; Detroit; Minneapolis; Seattle; Cleveland; Columbus, Ohio; Milwaukee; Charlotte, N.C.; Raleigh-Durham, N.C.; Greensboro, N.C.; Memphis, Tenn.; and Rochester, N.Y.

T-Mobile said the deal the subject to regulatory approval by the Federal Communications Commission (FCC) and the U.S. Department of Justice (DoJ).