Sprint Nextel to acquire broadband licenses from Bell for $13.5M

Bell Industries Inc. said it would sell an undisclosed chunk of 2.5 GHz spectrum to Sprint Nextel Corp. for $13.5 million, pending approval by the Federal Communication Commission. FCC approval is expected prior to the deal’s closing in 45 to 90 days, according to Bell.
The two parties to the deal are not disclosing details on the spectrum’s geographic location-for “competitive reasons,” according to Sprint. Bell’s 8-K filing with the Securities and Exchange Commission cited “licenses for the operation of Broadband Radio Service channels.” BRS typically refers to spectrum in the 2.5 GHz band but conveys nothing about geographic location.
Specific details would be “more appropriate” coming from Sprint Nextel, said Kevin Thimjon, Bell’s CFO.
The licenses in question were originally acquired by Bell in its purchase of SkyTel Corp.-a paging, telemetry, two-way messaging and e-mail subsidiary-from Verizon Communications Inc. late last year. The spectrum licenses were not producing revenue for Bell, according to the company.
Because Sprint Nextel’s roadmap focuses heavily on deployment of a WiMAX network in the 2.5 GHz range, that is certain to be the focus of speculation about the deal’s context.
Bell operates three units: technology solutions (from CRM to mobile solutions), SkyTel (e-mail, telemetry, text and numeric paging) and a recreational products group (after-market parts and accessories for recreational vehicles such as snowmobiles and ATVs).