US mobile carrier T-Mobile has announced a deal with Verizon Wireless, the company will purchase a 700MHz A-Block spectrum from Verizon.
The deal is worth a massive $2.37 billion US dollars to Verizon Wireless, and it will help T-Mobile expand its mobile network in the US.
This new low band spectrum will cover around 150 million people in the US, and will apparently improve coverage in major metro areas.
These are significant transactions that will further enhance a rapidly improving network experience that T-Mobile expects will create shareholder value. Low-band spectrum substantially improves in-building coverage as well as coverage in rural areas. It also travels greater distances than high-band spectrum and therefore is a more efficient way to provide coverage at the edge of cities and in less densely populated areas. Combined with its existing Boston A-Block holdings, T-Mobile will have low-band spectrum covering approximately 158 million people — including New York, Los Angeles, Dallas, Houston, Philadelphia, Atlanta, Washington D.C., and Detroit.
T-Mobile have said that they expect to roll out this new spectrum to compatible devices by the end of 2014, with the launch expected some time in the fourth quarter.
Source TMO News