Jump to content

Verizon offers to Buy Clearwire Spectrum Leases


marioc21

Recommended Posts

Just breaking from WSJ twitter feed:

 

Verizon is offering to buy $1.5 billion in spectrum leases from Clearwire.

 

Still looking for a full article. Will update when I find one.

 

 

 

Wall Street Journal @WSJ

 

Breaking: Verizon Wireless has offered to pay up to $1.5 billion to buy spectrum leases from Clearwire.http://wsj.com

 

https://twitter.com/WSJ

 

The Sprint related wireless news is sizzling today.

 

Update: Here's the WSJ Story. It's behind the paywall but search for the article title in google and it should get you through the paywall.

 

 

Verizon Wireless Pursuing Clearwire Spectrum

 

Verizon Wireless has offered to pay up to $1.5 billion to buy spectrum leases from Clearwire Corp., people familiar with the matter said.

...

Clearwire disclosed the offer in a securities filing Friday, but only identified the bidder as "Party J." People familiar with the matter confirmed it was Verizon. The price would be reduced by the present value of what Clearwire pays to lease the spectrum, an amount that could be substantial, the company said in the filing.

It's unclear whether Verizon, which is a joint venture of Verizon Communications Inc. and Vodafone Group PLC, has any ambitions with Clearwire beyond the spectrum purchase or how it might fit in with Sprint's agreement to buy the roughly 50% of Clearwire it doesn't already own. Clearwire said in the filing that it would evaluate the proposal and discuss it with "Party J" and Sprint.

...

 

http://online.wsj.com/article/SB10001424127887324345804578424514105025922.html?mod=googlenews_wsj

  • Like 1
Link to comment
Share on other sites

Yeah, after the massive SpectrumCo-Cox AWS acquisition, another huge VZW spectrum purchase is perfectly reasonable. Not! That transaction would not stand a snowball's chance in hell of approval.

 

AJ

  • Like 1
Link to comment
Share on other sites

I interpret this as verizon trying to ensure that sprints bid for clear is deemed "undervalued" and nothing more. It is a play to keep sprint from holding too many advantageous spectrum cards

  • Like 2
Link to comment
Share on other sites

Yeah, after the massive SpectrumCo-Cox AWS acquisition, another huge VZW spectrum purchase is perfectly reasonable. Not! That transaction would not stand a snowball's chance in hell of approval.

 

AJ

 

If it's just lease spectrum I fully support it and it would be good for Sprint/Clearwire/Dish/Softbank. Sprint on its own does not have the market clout to get 2500 built into phones affordably if they are the only carrier using that spectrum in the US. Look at what Sprint had to do to get the Iphone, will Apple build 2500 into a phone for Sprint without significant concessions again?

 

And considering the New Sprint spectrum holding divesting some leased spectrum might not be a bad thing in the FCC eyes.

 

*With ATT having WCS would the FCC really block a lease transfer? Especially given that with a Max lease of 15 years the carriers will all get a fair shot at it again in the future?

 

 

*Edit, transfer subject to reasonable buildout requirements of course*

Link to comment
Share on other sites

Yeah, after the massive SpectrumCo-Cox AWS acquisition, another huge VZW spectrum purchase is perfectly reasonable. Not! That transaction would not stand a snowball's chance in hell of approval.

 

AJ

 

This is above the spectrum screen - why would it not be approved? Frankly, more than one company should offer 2.6 service.

Link to comment
Share on other sites

Guest 503ducati

'No Slam Dunk'

 

http://blogs.wsj.com...s-no-slam-dunk/

 

Dish has made a stunning bid to buy Sprint S +13.18% for a cash-and -stock deal valuing Dish at $25.5 billion. Last year Softbank agreed to buy Sprint, also for a package of cash and stock. Dish claims its offer is worth 13% more.

 

. . .

 

Send questions, comments or story ideas to Dealpolitik@gmail.com.

Link to comment
Share on other sites

This is above the spectrum screen - why would it not be approved? Frankly, more than one company should offer 2.6 service.

 

I am with you. I have said it before and I will say it now. Unless Sprint plans to make money from OTT video (i.e. an extra $10-20/month for OTT video), they should just take the BRS spectrum out of Cleariwire and then try to get some money out of Clearwire by selling the network + spectrum to Dish or spectrum to Verizon.

  • Like 1
Link to comment
Share on other sites

I am with you. I have said it before and I will say it now. Unless Sprint plans to make money from OTT video (i.e. an extra $10-20/month for OTT video), they should just take the BRS spectrum out of Cleariwire and then try to get some money out of Clearwire by selling the network + spectrum to Dish or spectrum to Verizon.

 

Well, I think sprint using it for how they've explained (urban areas for additional capacity) is fine. I think the entire ecosystem is better off if there are more providers that offer 2.6GHz service. At 160MHz, there is enough to go around to benefit the ecosystem.

Link to comment
Share on other sites

Here is a BRS/EBS graphic that I have embellished and posted numerous times. Band 7 (FDD) is nigh impossible. Band 41 (TDD) is the only feasible option.

 

A93ArgECIAAh-0h.jpg

 

AJ

  • Like 4
Link to comment
Share on other sites

This is above the spectrum screen - why would it not be approved? Frankly, more than one company should offer 2.6 service.

I would be extremely surprised if VZ planned to actually utilized that spectrum.
Link to comment
Share on other sites

I would be extremely surprised if VZ planned to actually utilized that spectrum.

 

I think they would have places where they could use it. Het nets, small cells, DAS systems, super crowded places. They have 2x10 AWS they can still deploy in most places.

 

That said, I still think VZW is making a play for EBS for two reasons.

 

1. They are up against the spectrum cap.

2. They want to inflict their own "Operation Chaos" on the Sprint/Dish/Clear fiasco.

Link to comment
Share on other sites

2. They want to inflict their own "Operation Chaos" on the Sprint/Dish/Clear fiasco.

 

Apparently, VZW is being advised by Leopold Stotch of Sanford Bernstein...

 

 

AJ

  • Like 1
Link to comment
Share on other sites

I have no problem with Verizon or Dish or AT&T buying a slice of that spectrum. Unless Sprint/Clearwire become OTT video providers and/or fixed broadband ISPs, they will have no use for that spectrum for strictly mobile needs. I would not mind at all if there was a three way split of the spectrum. VZ and Dish split the EBS spectrum and Sprint/Clearwire get the BRS spectrum. Dish also gets the Clearwire infrastructure. Sprint/Clearwire gets some money out of it to wipe out some of Clearwire's debt and the spectrum gets utilized. Then Sprint turns around and merges with T-Mobile/MetroPCS. Sprint is happy, VZ is happy, Dish is somewhat happy, the feds are happy that we have 4 carriers again, and most importantly, I am happy because we have 3 strong competitors.

Link to comment
Share on other sites

Sprint merging with T-Mobile / MetroPCS is a non-starter. They have too much M/A activity that it's completely impractical right now, and downt he road once the CLWR / SoftBank / Dish dust settles, I don't think it would make much sense anyway.

 

Besides, didn't the Nextel deal teach us anything about completely incompatible networks and frequencies? T-Mo and MPCS have 1900, but they've got a lot of other baggage too that complicates. You can't play in every spectrum pool, you've got to settle on a few and Sprint seems to have settled on 800/1900/2.5/2.6

Link to comment
Share on other sites

Sprint merging with T-Mobile / MetroPCS is a non-starter. They have too much M/A activity that it's completely impractical right now, and downt he road once the CLWR / SoftBank / Dish dust settles, I don't think it would make much sense anyway.

 

Besides, didn't the Nextel deal teach us anything about completely incompatible networks and frequencies? T-Mo and MPCS have 1900, but they've got a lot of other baggage too that complicates. You can't play in every spectrum pool, you've got to settle on a few and Sprint seems to have settled on 800/1900/2.5/2.6

 

I don't know...AT&T and Verizon seem pretty close to playing with every spectrum pool (700/850/AWS/PCS). AT&T goes even further with investing in WCS spectrum as well. I agree that Sprint needs to settle on a few bands but I feel Sprint should support bands that everyone else is also using for economies of scale. I wouldn't object if Sprint decided to add AWS band spectrum support at some point in the future whether that is through obtaining some AWS spectrum (ex: Cricket purchase) or if LTE roaming becomes available. The other 3 major carriers are planning to deploy LTE on AWS spectrum and there will be an upcoming AWS spectrum auction perhaps in 2014 to expand the AWS band.

Link to comment
Share on other sites

The other 3 major carriers are planning to deploy LTE on AWS spectrum and there will be an upcoming AWS spectrum auction perhaps in 2014 to expand the AWS band.

 

Yes and no. AT&T is doing some token AWS LTE deployment right now, but that is only until AT&T further consolidates its Lower 700 MHz spectrum holdings and gets LTE up and running on Cellular, PCS, and WCS. Then, expect AT&T to bow out of AWS, selling off what little remains to VZW and/or T-Mobile.

 

AJ

Link to comment
Share on other sites

Sprint merging with T-Mobile / MetroPCS is a non-starter. They have too much M/A activity that it's completely impractical right now, and downt he road once the CLWR / SoftBank / Dish dust settles, I don't think it would make much sense anyway.

 

Besides, didn't the Nextel deal teach us anything about completely incompatible networks and frequencies? T-Mo and MPCS have 1900, but they've got a lot of other baggage too that complicates. You can't play in every spectrum pool, you've got to settle on a few and Sprint seems to have settled on 800/1900/2.5/2.6

 

Of course after the dust settles.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • large.unreadcontent.png.6ef00db54e758d06

  • gallery_1_23_9202.png

  • Posts

    • T-Mobile wins more 5G spectrum over AT&T's objections So now it's official?
    • Just got back from Puerto Rico. I spent a lot of time going around the San Juan metro area, predominantly in Viejo San Juan, Santurce, Isla Verde, and a short stop in University Gardens.  T-Mobile's network still performs as well today as it did when I last tested and in my opinion is the best on the island. n41 is still at 100MHz in most areas though I did record a few areas with only 80MHz. Yesterday the FCC announced that they're finally granting T-Mobile their Auction 108 winnings so we'll probably finally see that increase. They also have 15MHz of n25 and 15MHz of n25 and 15MHz n71. The fastest speed I recorded while there was 922 down and 120 up, presumably aggregating n41+n25 and potentially n71 as well but I wasn't able to confirm that. A couple of things I noticed about their network are that their is a ton of split-sector n25 deployed in San Juan, much like in the U.S. I even noticed some n41 sites that had 4 or more sectors. The weirdest being the site on top of SJU Airport where they have 6 n41 sectors each broadcasting 80MHz of n41. AT&T SIMs roam on LIberty's network but they still treat it as the home network. In my opinion they're the second best network in Puerto Rico. Liberty is still using the AT&T MCC-MNC code and is pretty much coasting on AT&T's network upgrades. They have 10MHz n5 virtually everywhere but I never saw my phone connect to any other 5G bands. Their saving grace was just how much spectrum they have to aggregate across midband and lowband. I'd see combos like 10MHz n5 + 20MHz B2 + 10MHz B66 + 10MHz Band 30 + 5MHz Band 2 and get upwards of 200Mbps. Coverage was slightly worse than T-Mobile in my experience, even indoors which is a surprise given T-Mobile usually struggles a bit indoors due to their macro density. Verizon is roaming on Claro in Puerto Rico just as they have been for years. No idea if there is 5G roaming because I was connected to LTE the entire time. Toggling 5G didn't do anything and both pings and speeds weren't great. Speeds were in the 20-40Mbps range consistently and pings over 200ms. For comparison T-Mobile's pings are in the teens and Liberty pings are in the 40's even when roaming using an AT&T SIM. Claro's network is ok in my experience with nothing really notable about it.  — — — — — Here are some pics of sites that I took:
    • WTB instructed to process all 2.5GHz licenses across the USA. They are only giving up some spectrum in certain markets of Hawaii.
    • Is this just for licenses in Hawaii?
    • Yeah, it basically directs the bureau to proceed with granting the applications in the normal course.  It's no longer being held by the AT&T objection. - Trip
  • Recently Browsing

    • No registered users viewing this page.
×
×
  • Create New...