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Carrier Wrap: T-Mobile US closes on 700 MHz spectrum deal; AT&T expands Domain 2.0

Editor’s Note: Wireless operators are a busy bunch, and as such RCR Wireless News will attempt to gather some of the important announcements that may slip through the cracks from the world’s largest carriers in a weekly wrap-up. Enjoy!

–T-Mobile US officially bolstered its sub-1 GHZ spectrum holdings, with the FCC this week approving the carrier’s deal with Verizon Wireless to exchange spectrum and cash.

The deal, which was initially announced earlier this year, had T-Mobile US acquiring highly-coveted low-band 700 MHz A-Block spectrum licenses for $2.365 billion and the transfer of some 1.7/2.1 GHz and 1.9 GHz spectrum licenses that T-Mobile US valued at $950 million. The two carriers also noted that they would “realign spectrum blocks in certain markets, primarily in northern California and the Atlanta area.”

T-Mobile US noted that the deal will result in the carrier controlling sub-1 GHz spectrum licenses in 21 of the nation’s top 30 markets and approximately 158 million potential customers. T-Mobile US had previously controlled a 700 MHz A-Block license covering Boston, and with the new deal adds coverage to New York, Los Angeles, Dallas, Houston, Philadelphia, Atlanta, Washington D.C., and Detroit.

“T-Mobile is pleased by the FCC’s prompt approval of our acquisition of 700 MHz A-Block spectrum, which will provide the company with low-band spectrum in a number of key markets across the country,” noted Kathleen Ham, VP of regulatory affairs at T-Mobile US. “Special thanks to the leadership and staff of the wireless bureau for getting this done.”

T-Mobile US has been vocal in claiming the need for sub-1 GHz spectrum in order to better compete against larger rivals Verizon Wireless and AT&T Mobility, both of which controlled more than 80% of those licenses prior to the latest deal. T-Mobile US continues to pressure the FCC on rules for the 600 MHz incentive auction that would limit the bidding abilities of the nation’s two largest operators.

AT&T named Amdocs and Juniper Networks as vendors for its user-defined network cloud initiative that is part of its Domain 2.0 supplier program. That program, which was announced earlier this year, looks to accelerate the time-to-market of services and cut capital expenses.

“This is an ambitious program that allows us to tap into the latest technologies to enhance the network infrastructure,” said Tim Harden, president of AT&T’s supply chain. “We’re taking another step toward building the faster, simpler and more flexible network of the future that provides increased global connectivity with easily scalable and faster content delivery.”

The initial partners included Ericsson, Tail-F Systems and Metaswitch Networks, who have been selected to begin “further discussions on design and deployment,” while Affirmed Networks was picked to work on a virtualized evolved packet core. AT&T also said it would work with Ericsson on integration and transformation services, with plans to announce additional partners later this year.

AT&T said the program will result in a user-defined network cloud architecture that will be integrated through its cellular network and utilize network function virtualization and software defined network technology. The goal is to separate hardware and software functionality; separate network control plane and forwarding planes; and improve management of functionality in the software layer.

–AT&T also announced that beginning April 25, its GoPhone prepaid offering would provide additional data capabilities for both current and new smartphone customers.

The new plans will boost the $60 per month offering from two gigabytes of data to 2.5 GB of data, while the $40 per month plan will move from 200 megabytes of data to 500 megabytes of data. The $60 plan will also allow customers to use their smartphone as a mobile hotspot. GoPhone will also offer a new plan through Wal-Mart stores that provides 1 GB of data and unlimited domestic voice calling for $45 per month.

AT&T is in the process of consolidating its prepaid operations under Leap Wireless’ Cricket brand, which AT&T acquired last month. AT&T said it expects the consolidation, which will also include its Aio Wireless brand, to be completed during the second quarter of this year.

Republic Wireless signed a deal with ModusLink to provide reverse logistics for the wireless operator. The agreement includes customer returns, triage, repair and fulfillment of refurbished mobile devices and accessories.

Republic Wireless initially launched service in early 2012, providing customers with a wireless services using a combination of Wi-Fi and cellular service running across Sprint’s wireless network.

Republic Wireless this week also announced plans to begin rolling out Google’s Android KitKat 4.4.2 operating system on its Motorola X smartphone. The update will initially be provided to 2,000 random customers, with more added by April 30 and all customers able to access the upgrade by May 9.

Fierce Wireless reported this week that Verizon Wireless had acquired a pair of rural carriers in California-based Golden State Cellular and Hawaii-based Mobi PCS. Financial terms of the deal were not released, but both deals are still pending FCC approval.

The report states that the Golden State Cellular deal includes spectrum, network assets and approximately 18,000 customers across a handful of counties. The Mobi PCS deal includes between 20 and 30 megahertz of 1.9 GHz spectrum, with Mobi PCS then leasing back 10 megahertz of spectrum for up to one year as it transitions away from being a “facilities-based service provider.”

Earlier this month Verizon Wireless picked up regional operator Cincinnati Bell’s wireless operations for $210 million.

Additional carrier news can be found on the RCR Wireless News “Carriers” page.

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