AT&T Inc. (NYSE: T) announced this morning that it is acquiring wireless spectrum in the 700 MHz B band from Verizon Wireless for $1.9 billion. The spectrum covers 42 million people in 18 states, according to AT&T’s announcement. Verizon Wireless is a joint venture of Verizon Communications Inc. (NYSE: VZ) and Vodafone PLC (NASDAQ: VOD).
The sale is related to the deal Verizon made to gain federal government approval for its $3.9 billion purchase of Advanced Wireless Services (AWS) spectrum from SpectrumCo. SpectrumCo is a joint venture of Comcast Corp. (NASDAQ: CMCSA), Time Warner Cable Inc. (NYSE: TWC), BrightHouse Networks and Cox Communications Inc.
AT&T plans to use the spectrum to deploy further its 4G LTE network. The company has a goal of making its high-speed network available to 300 million Americans by the end of 2014. The acquisition is subject to regulatory approval.
Shares of AT&T are up about 0.6% this morning, at $33.93 in a 52-week range of $29.02 to $38.58.