T-Mobile 700 MHz coverage set to now include Chicago as it picks up A-Block license from AT&T’s Leap subsidiary, pushes total 700 MHz coverage to 269M pops
T-Mobile US continued the expansion of its 700 megahertz spectrum portfolio, announcing a deal to acquire a 12-megahertz A-Block spectrum license covering Chicago from Leap Licensesco, which is a subsidiary of AT&T.
Financial terms of the transactions were not announced for the deal, which is expected to close later this year. T-Mobile US said it was advised by TAP Advisors on the deal, as it has been for all of its 700 MHz spectrum purchases.
T-Mobile US said the Chicago license covers 10.9 million potential customers in the area, including Elgin, Joliet, Waukegan, Evanston, Naperville, Aurora and Gary, Ind.; and Rockford, De Kalb, Janesville, Bloomington, Normal, Kankakee and Kenosha, Wisc. Overall, the deal pushes the carrier’s 700 MHz-fueled coverage to 269 million pops, including the nation’s top 10 markets, with commercially launched 700 MHz licenses covering 195 million pops.
T-Mobile US earlier this year said it entered into agreements to acquire 700 MHz spectrum licenses covering 48 million potential customers, as part of its overall goal of extending its sub-1 GHz spectrum holdings used for LTE coverage under the Extended Range brand. The carrier also is in the midst of participating in the Federal Communications Commission’s 600 MHz incentive auction proceedings, having set aside several billion dollars to fund bidding activity.
The Chicago license was part of a condition placed on AT&T for gaining regulatory approval of its acquisition of Leap Wireless in 2014. Due to AT&T’s already extensive low-band spectrum holdings in the Chicago area, regulators required AT&T to sell the license, with proceeds to be spread amongst Leap shareholders.
Cricket had initially picked up the license in 2012, as part of a spectrum swap deal with Verizon Wireless. That deal had Cricket forking over $204 million and, in turn, selling various 1.9 GHz and 1.7/2.1 GHz spectrum licenses to Verizon Wireless for $188 million.
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