T-Mobile said Monday that it will acquire wireless spectrum from Verizon Wireless and swap some of its own in a bid to bolster its coverage in key markets in the U.S.
Specifically, T-Mobile said it will buy 700 MHz A-Block spectrum licenses from Verizon Wireless for $2.36 billion and transfer AWS and PCS spectrum licenses valued at $950 million to Verizon Wireless.
The move gives T-Mobile so-called low-band spectrum in markets such as Boston and bolster its coverage in 21 of the top 30 markets in the U.S. Low-band spectrum improves in building wireless coverage and travels farther.
According to T-Mobile, the Verizon Wireless deal is expected to close in mid-2014 pending regulatory approval.
The wireless carrier has been actively rolling out its 4G LTE network and now coverage 43 of the top 50 metro areas and plans to expand more in 2014.
T-Mobile CEO John Legere said that the move will expand the company's network and improve network performance overall.
Verizon Wireless and T-Mobile will also align spectrum holdings in Northern California and Atlanta.