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Verizon spectrum purchase raises the pressure on the AT&T/T-Mobile mess

  • TC2 Blog
  • 12/7/2011
  • David Rohde

Let’s say you have a spare $4 billion lying around. Okay, I know you don’t, but go with me here. Assume you’re with a telecom supplier rather than sitting in the customer’s chair. What do you do with the money?

If you’re Verizon Wireless, you take $3.6 billion of the money and buy a big chunk of additional spectrum covering most of the country. Last week Verizon snapped up spectrum held by three cable companies – spectrum they’d been holding onto since the days when they thought they might go into the wireless business themselves. Verizon also signed cross-marketing agreements with the three cablecos, giving it a new sales channel that can’t be matched by Verizon’s rivals.