AT&T spends $1.9B on Verizon spectrum to improve LTE coverage

AT&T

AT&T has just announced that it will spend $1.9 billion on purchasing 700MHz spectrum from its biggest rival, Verizon. The main reason behind this move is that it wants to focus on expanding its fast-growing LTE presence in the States. As note in the company’s press release:

This acquisition complements AT&T’s existing holdings in the 700 MHz B band and will allow AT&T to continue to quickly deploy 4G LTE services to meet demand for mobile Internet services on a wide array of smartphones, tablets and other devices. The company announced in November 2012 that it plans to reach 300 million people in the U.S. with its 4G LTE network by the end of 2014.

This announcement comes less than a day after the network provider published its Q4 2012 earnings in which it lost close to $4B due to pension revaluation. Although this acquisition will undoubtedly affect the companies margins for 2013, it will benefit it in the long term as it seeks to give more subscribers access to 4G internet speeds.

Via: AT&T
Image Credit: The Verge

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