Offered as part of the break-up fee
The US Federal Communications Commission (FCC) has approved AT&T’s transfer of Advanced Wireless Systems (AWS) spectrum licenses to T-Mobile USA worth about $1bn.
The spectrum will be allocated by AT&T as a break-up fee following the failure of the company’s attempt to merge T-Mobile for $39bn.
This transfer provides T-Mobile with AWS mobile spectrum in 128 cellular market areas (CMAs), including 12 of the top 20 markets, T-Mobile stated.
T-Mobile USA chief technology officer Neville Ray said, "Securing this additional spectrum was a key catalyst for our plans to launch LTE in 2013 and is therefore good news for our customers."
The carrier said it continues to need more AWS spectrum to support its 4G evolution efforts and the continued growth in mobile data services.
T-Mobile, a Deutsche Telekom subsidiary, will use the newly acquired spectrum to develop its recently announced 4G network evolution strategy, which the company expects to deploy in 2013.
The company has committed to spend $4bn on network modernisation to improve existing voice and data coverage, and deploy new technology.
AT&T had promised to give wireless air waves and $3bn in cash to T-Mobile USA after the company’s plan to buy its smaller rival failed late last year due to strong opposition from regulatory bodies over competition concerns.