Verizon has been selling off some of its 700MHz spectrum licenses in the lower A block. And U.S. Cellular has agreed to buy some more.
Verizon Wireless found a buyer for more of its unwanted 700MHz wireless spectrum.
On Tuesday, Verizon announced it has struck a deal with regional carrier U.S. Cellular to sell its 700MHz A block spectrum licenses in Oklahoma City and in 31 surrounding counties. The licenses cover roughly 1.9 million potential customers. Terms of the deal were not disclosed. The Federal Communications Commission must still approve the transaction.
Verizon acquired some 700MHz licenses in the lower A block in various markets during the FCC's 2008 auction. It also bought the nationwide 700MHz in the upper C block. Verizon has used the upper C block 700MHz to build its nationwide 4G LTE network. Because the band plans are different for the lower A block and the upper C block 700MHz spectrum, Verizon cannot easily integrate this spectrum into its network.
The lower A block spectrum also has some potential interference issues with adjacent TV broadcast services, which has made it difficult for other A block licensees to deploy services in this block.
As a result, Verizon has been selling off this spectrum over the past year. Since 2011, Verizon has sold or has agreed to sell 37 of its lower 700 MHz spectrum licenses to 11 different telecommunications companies. This includes a previous sale to U.S. Cellular.
In April last year, Verizon said it would sell this spectrum if the FCC approved its plan to buy 20MHz of wireless spectrum from cable operators. But the offer didn't sway regulators, who were more concerned about Verizon's higher frequency wireless spectrum holdings.
A few months later, Verizon offered to sell some of its AWS spectrum to T-Mobile. That deal seemed to seal the deal for regulators. In August, the Department of Justice and the FCC approved the deal.
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