Verizon To Collect $1.9 Billion From AT&T

Verizon To Collect $1.9 Billion From AT&T

AT&T is said to have signed two contracts worth more than $2 billion within the last couple of days as the company increases and moves forward with its wireless spectrum program to ramp up capacity for 4G and other high-speed products.

Verizon Wireless said it agreed to sell spectrum permits in five markets and access to wireless airwaves to the Number 2. US cell phone service supplier for a total of $1.9 billion in cash.

The ATT/Verizon treaty was made public just hours after AT&T announced it will also buy Atlantic Tele-Network Inc’s Alltel wireless business for $780 million in cash, the deal consist of 585,000 customers and access to its wireless spectrum.

During 2012 ATT signed more than 40 wireless spectrum contracts with the intention of boosting its national spectrum capacity, Chief Executive Officer for ATT, Randall Stephenson, commented during the last conference call this Thursday.

The mobile provider is currently running behind Verizon Wireless in the high-speed wireless network upgrade race, ATT is said to have been making smaller spectrum treaties since its $39 billion bid to buy T-Mobile USA in late 2011 fell though due to regulatory opposition.

Escalating demand for mobile internet services for tablet computers, smart-phones and other mobile devices are pushing wireless service providers to strengthen their wireless spectrum capacity as they seek bigger profits from increasing consumer demand.

Annalists argue that the spectrum deal was positive for both companies and bestows AT&T spectrum coverage in significant markets such Miami and Los Angeles.


Email address: Jack (at) KabirNews.com

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