Cable Group to Sell Spectrum to Verizon for $3.6 Billion - rayandoess

SpectrumCo, a joint venture among Comcast, Clock time Warner Cable and Bright as a new penny House Networks, has agreed to sell mobile spectrum licenses covering 259 million U.S. residents to Verizon Wireless for US$3.6 billion, the companies announced Friday.

The deal, for 122 Progressive Wireless Services (AWS) licenses, bequeath establish Comcast $2.3 billion and Time Warner $1.1 cardinal, supported their ownership stakes in SpectrumCo. The joint venture paid $2.4 billion for 137 AWS licenses in a 2006 auctioneer at the U.S. Federal Communications Commission.

SpectrumCo has been criticized by the National Association of Broadcasters for non using, or "hoarding," the spectrum while the FCC and mobile carriers press Telly stations to give up some of their spectrum.

The spectrum purchase, subject to FCC approval, testament help Verizon Wireless deal with growing spectrum demands from mobile customers, the companies said. "This sale of spectrum is an distinguished step toward ensuring that the necessarily and desires of consumers for additive mobile services will not be thwarted by the current spectrum shortage," Comcast same in a statement.

The spectrum will allow for Verizon to bring better 4G services to its customers, aforesaid Dan Mead, chairperson and CEO of Verizon Wireless. "Spectrum is the raw material connected which wireless networks are improved, and buying the AWS spectrum now solidifies our network leadership into the upcoming," he said in a statement.

The companies also entered into other agreements. The cable companies and Verizon Wireless wish deal out for each one other's products, and the cable companies wish, in the prox, have the option of selling Verizon Wireless service on a wholesale basis, the companies said. Verizon and the line companies have also formed a cosignatory venture to develop technology to fitter integrate wireline and wireless products and services, the companies aforesaid in a compress release.

The deal comes days afterwards the FCC announced that staff had found that the planned $39 billion acquisition of T-Mobile USA by AT&T is non in the public interest.

The deal is good for both sides, said independent telecom analyst Jeff Kagan. "This looks the like it is the end of the line for the cable television service industry nerve-racking to personify a participant in the wireless space exploitation their own networks," he aforementioned in an netmail. "The cable television industry has tried to get into wireless in recent years and they receive failed."

SpectrumCo didn't "think like a wireless party," he added.

The deal makes signified for Verizon as it faces capacity problems in coming years, Kagan said. "Demand for radio receiver data services has exploded in the last iv years and I assume't visit it retardation consume in the near coming," he said. "I'll bet AT&T wishes they could have their manpower on this spectrum. That would have solved their job, only they are taking a variant path past trying to evolve T-Mechanized."

Grant Gross covers applied science and telecom policy in the U.S. government for The IDG News Service. Comply Grant on Twitter at GrantGross. Give's e-mail address is grant_gross@idg.com.

Source: https://www.pcworld.com/article/472522/cable_group_to_sell_spectrum_to_verizon_for_36_billion.html

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