Verizon has agreed to sell 700 MHz A-block spectrum to T-Mobile for $2.365. Also part of the sale are some PcS and AWS spectrum licenses which are priced at around $950, taking the total volume of the deal to $3 billion.
This spectrum was purchased by Verizon for $2.4 billion but these are still lying un-utilized. Frank Shammo, CFO of Verizon has said that his company was willing to sell this spectrum for a suitable price and it was currently looking at the bids from both T-Mobile and AT&T.
The successful bid by T-Mobile is indicative of the plans of T-Mobile to increase its coverage for which it has recently raised $4 billion by raising debt and selling stock. These low-band airwaves will be used by T-Mobile to offer LTE services throughout US. Although this spectrum is prone to interference particularly from TV operators but it is ideally suited for rural coverage and penetration.