T-Mobile is spending $308 million in cash to buy 10MHz of Advanced Wireless Spectrum (AWS) from U.S. Cellular. This spectrum covers a total of 32 million people in 29 markets in the Mississippi Valley area. This includes St. Louis, Nashville, Memphis, Kansas City, Little Rock-North Little Rock, Lexington, Birmingham, Louisville, and New Orleans.
T-Mobile said that this will allow an incremental roll-out of it’s 4G LTE network coverage to new markets. This will expand their existing coverage in the Mississippi Valley area.
“In today?s marketplace, spectrum is gold,” stated T-Mobile president and CEO John Legere. “This is a rare opportunity to secure precious AWS spectrum in key markets that will immediately be put to use by both T-Mobile and MetroPCS customers. This deal expands our network and capacity, allowing for a broader roll-out of 4G LTE and an even faster and more reliable 4G experience for our customers ? in addition to spurring competition in the wireless marketplace.”
This deal is subject to FCC approval and is expected to close in Q4. Last month, T-Mobile and MetroPCS merged with each other.