AT&T to Acquire NextWave for $600M to Boost Its Mobile Spectrum - gillmandifuld

AT&T plans to acquire NextWave Wireless, a holder of spectrum that could be used for mobile data services, for about $600 million.

NextWave has licenses for spectrum in both the WCS (Wireless Communications Services) and the AWS (Advanced Radio Services) band. AT&T said in a press release it hopes to use that spectrum to feed "skyrocketing" demand for mobile data, but IT will stimulate to wait for an ongoing Government Communications Commission review before it buttocks bring on advantage of the WCS band.

The FCC auctioned WCS spectrum in 1997, only it has not been used for mobile data because of rules designed to prevent interference with planet users in adjacent bands, AT&T said. In June, AT&adenylic acid;T and satellite radio company Sirius XM filed a proposal to the FCC for exploitation WCS while protecting the nearby satellite users, only the authority is still reviewing that plan. If it is approved, AT&T hopes to start victimisation the WCS band in about three years.

The NextWave heap is only the latest in a series of moves past big versatile operators to fail-safe more spectrum. AT&ere;T characterized its proposed merger with T-Mobile USA last year, which was opposed aside the FCC and other regulators, A first and frontmost a deal to acquire spectrum. Verizon Wireless announced a bargain earlier this class, which is still under FCC review, to evolve idle wireless licenses from major U.S. cable operators.

Most of the price AT&T would pay for NextWave, about $600 million, would be for the company's debt. AT&T would also bear about $25 million for NextWave's equity, plus a contingent defrayal of every bit much as $25 million. IT expects to close the transaction, unfinished approval by the FCC and other regulators, by the end of this year.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Chirrup at @sdlawsonmedia. Stephen's e-mail handle is stephen_lawson@idg.com

Source: https://www.pcworld.com/article/460379/atandt_to_acquire_nextwave_for_650m_to_boost_its_mobile_spectrum.html

Posted by: gillmandifuld.blogspot.com