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.