Verizon, Leap Wireless announce spectrum swap

Leap said its goal was to bolster its coverage in Chicago. For Verizon, the arrangement gives it more spectrum to squeeze AT&T.

Verizon Wireless and Leap Wireless announced a spectrum swap as carriers wheel and deal for network capacity.

Under the deal, Leap Wireless will acquire 12 Mhz of 700 Mhz A-block spectrum in Chicago for $204 million. Verizon will acquire excess spectrum in various markets around the U.S. for $188 million.

A Leap venture--Savary Island Wireless--will also sell spectrum to Verizon for $172 million.

The arrangement comes just a few days after Verizon Wireless acquired wireless spectrum from cable providers to bolster its coverage. The Verizon deal with the cable companies was a nice countermove to AT&T, which needs spectrum if its T-Mobile purchase ultimately falls apart.

Leap said its goal was to bolster its coverage in Chicago. For Verizon, the arrangement gives it more spectrum to squeeze AT&T.

This story was first published as "Verizon Wireless, Leap Wireless swap spectrum" at ZDNet's Between the Lines.

About the author

    Larry Dignan is editor in chief of ZDNet and editorial director of CNET's TechRepublic. He has covered the technology and financial-services industries since 1995.

     

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