T-Mobile USA has managed to arrive at a spectrum deal with Verizon Communications Inc. (NYSE:VZ) wireless. Although financial dynamics surrounding the deal are still in the dark, the inked agreement has not failed to grasp the attention of the market. One particularly notable thing about the deal is the game changing capabilities that it has. Both sides are gaining spectrum with Verizon expected to gain spectrum covering 22 million people and T-Mobile a greater 60 million people.
The Advanced Wireless Services (AWS) spectrum licenses cut across 218 U.S markets. It is deemed that the transaction will push T-Mobile a notch higher as it will better T-Mobile’s standing in 15 of the high priority markets in the U.S
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At the fall of 2011, T-Mobile post-paid customer base was shredded in bits after it lost more than 700,000 customers. This transaction therefore passes by as the much needed silver lining and should revive prospects at T-Mobile.
At the wake of the much awaited regulatory approval, the spectrum can be spread to incorporate the planned improvements on the company’s 4G outlook. It can also include the highly anticipated rollout of LTE services slated for next year.
Phillip Hum, the president and Chief Executive Officer, noted that the AWS spectrum would be greatly beneficial to network performance and capacity. The most notable part of his response with regard to the inked agreement was that the agreement in itself was an all-win situation for consumers and T-Mobile. Hum also pointed out that T-Mobile expected FCC approval later in the summer and added that the approval would be subservient in rolling out LTE services in the coming year.