Recently there have been a lot of rumors circulating that Verizon is looking to sell its unwanted A-block spectrum to T-Mobile U.S., the fourth largest mobile carrier in the country. The Big Red has already said that it is open to spectrum swapping, and according to a new report by Bloomberg, that’s what’s likely to happen. It is reported that the deal might be announced as early as next week as the final details are in the process of being hammered out. As a result, T-Mobile will get its hand on frequencies that cover almost 150 million people in the country. Verizon will get cash and spectrum in markets where it needs the most.
BTIG analyst Walt Piecyk believes that Verizon is probably going to want $3 billion for the spectrum, which is acquired back in 2008 through a government auction for $2.6 billion. Such a deal would require approval from the FCC, and once the deal goes through, T-Mobile will get access to low-band frequencies that its network is currently missing. As a result of the swap, Verizon will be able to use T-Mobile’s AWS airwaves to improve its service in congested markets like New York. Spokespersons for both carriers have declined to comment on this particular report, so we’ll have to wait until next week to find out if both Verizon and T-Mobile have reached an agreement.