Verizon has began selling spare 700MHz spectrum to operators who are smaller and operating in rural areas.
Two smaller firms, Panhandle Telecommunication Systems and Nortex Communications are the first to sign up with the telecommunications giant, located in Guymon, Okia and Muenster, Texas respectively.
Panhandle has signed an agreement to purchase the RSA 2-Hansford 700 MHz lower B-block license, which covers 12 counties in northwestern Texas. Nortex Communications has bought the Texas RSA 6-Jack 700 MHz lower B-block license, which covers a four-county area northwest of Dallas.
The deals are subject to Federal Communications Commission (FCC) approval, and are part of Verizon's overall plan to be a "good steward" of the spectrum it owns, now it has been given permission to purchase spectrum from other cable companies.
Verizon is evaluating bids from other communications firms for lower 700 MHz spectrum licenses, which cover both larger cities and rural areas across the United States. In total, the telecommunications giant has sold or is in the process of selling 26 of its lower 700 MHz spectrum licenses to nine different firms who operate in 13 states.
The firm has also launched its "LTW in Rural America" program, which aims to make spectrum licensing more easily available to operators in remote locations.