Verizon Wireless, Leap Wireless swap spectrum

Summary:Leap said its goal was to bolster its coverage in Chicago. For Verizon, the arrangement gives it more spectrum to squeeze AT&T.

Verizon Wireless and Leap Wireless announced a spectrum swap as carriers wheel and deal for network capacity.

Under the deal, Leap Wireless will acquire 12 Mhz of 700 Mhz A block spectrum in Chicago for $204 million. Verizon will acquire excess spectrum in various markets around the U.S. for $188 million.

A Leap venture---Savary Island Wireless---will also sell spectrum to Verizon for $172 million.

The arrangement comes just a few days after Verizon Wireless acquired wireless spectrum from cable providers to bolster its coverage. The Verizon deal with the cable companies was a nice countermove to AT&T, which needs spectrum if its T-Mobile purchase ultimately falls apart.

Leap said its goal was to bolster its coverage in Chicago. For Verizon, the arrangement gives it more spectrum to squeeze AT&T.

Also: Verizon Wireless' master stroke and the spectrum crunch ahead | Verizon boosting network after major purchase from Comcast, Time Warner | AT&T lashes out at opponents following latest FCC report | Clearwire inks new network deal with Sprint | CNET: Verizon’s $3.6 billion spectrum deal: Who wins and who loses?

Topics: Verizon

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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