In a move that could relieve its spectrum needs ahead of upcoming auctions by NextWave Telecom Inc. and the Federal Communications Commission, Verizon Wireless reported a definitive agreement to purchase Qwest Communications International Inc.’s wireless assets for $418 million. The purchase price is well below the $1 billion-plus analysts predicted the company could have received for its wireless network, which includes spectrum in 62 markets and is now empty following Qwest’s recent transition of its customer base to Sprint PCS’ wireless network.
The agreement, which Verizon Wireless said is expected to close later this year or early next year, includes Qwest’s PCS spectrum spread throughout 14 western states and covering 30.8 million potential pops, as well as the carrier’s CDMA-based network switching centers, cell sites and related network equipment.
Verizon Wireless noted 53 of the licenses included in the deal are in markets where it already offers service and will be used to expand capacity to meet increased voice and data traffic. New markets for Verizon Wireless included in the deal cover 1.5 million pops in nine markets, including Rochester and St. Cloud, Minn.; Lincoln, Neb.; and Longview, Wash.
