Verizon Wireless announced Friday afternoon it has purchased 122 Advanced Wireless Services spectrum licenses for $3.6 billion from a joint venture of three cable companies.
The sale ensures Verizon Wireless, in the Basking Ridge section of Bernards, will have enough of the spectrum, which is the basis for wireless networks, to accommodate the growing needs for mobile services.
The licenses come from a SpectrumCo LLC, which is comprised of Comcast Corp., Time Warner Cable and Bright House Networks. Comcast owns 63 percent of the licenses, and will receive roughly $2.3 billion from the sale.
“Americans deserve excellence from a wireless service provider, and innovative wireless companies plan ahead in order to deliver on that expectation,” said Dan Mead, president and CEO of Verizon Wireless, in the announcement. “Spectrum is the raw material on which wireless networks are built, and buying the AWS spectrum now solidifies our network leadership into the future, and will enable us to bring even better 4G LTE products and services to our customers.”
In addition to the sale, Verizon is forming a joint venture with the three cable companies to innovate technology to better integrate wireline and wireless products, as well as agreements to sell each others products and services, including on a wholesale basis.