UPDATE 1-T-Mobile to buy spectrum licenses from Verizon Wireless

Monday, 6 Jan 2014 | 8:02 AM ET

Jan 6 (Reuters) - T-Mobile US Inc said it would buy spectrum licenses from Verizon Wireless for about $2.4 billion in cash to improve its high-speed wireless services in the United States.

Verizon Wireless, owned by Verizon Communications Inc and Vodafone Group Plc, said last year it would consider selling unused A Block airwaves in the 700 megahertz frequency band.

T-Mobile said the licenses cover over 150 million people in areas such as New York, Atlanta and Los Angeles and that it expects to roll out services on the spectrum from as early as the fourth quarter of 2014.

T-Mobile was looking to buy the spectrum from Verizon Wireless to bolster capacity for data services, Reuters reported in November.

The transaction also includes the transfer of spectrum licenses for advanced wireless services (AWS) and personal communications service (PCS), estimated to be worth about $950 million, T-Mobile said.

The two companies will also realign spectrum blocks in markets such as northern California and Atlanta.

TAP Advisors were financial advisers for T-Mobile, which is majority owned by Deutsche Telekom.

T-Mobile shares were up 1.4 percent at $32.73 in premarket trading on the New York Stock Exchange.

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