Verizon offers to Buy Clearwire Spectrum Leases

[marioc21]

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

[JustinRP37]

And now Dish put in a bid to take over Sprint!

Dish Makes $25.5 Billion Bid for Sprint

http://dealbook.nytimes.com/2013/04/15/dish-network-makes-25-5-billion-bid-for-sprint-nextel/

[WiWavelength]

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

[JeffDTD]

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

[jegillis]

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*

[jefbal99]

WTF?!?! is it screw with Sprint and its corporate plans day?

[JonnygATL]

Basically I think it's just spring fever; everyone's horny for spectrum. Lol

[MacinJosh]

WTF?!?! is it screw with Sprint and its corporate plans day?

 

This is exactly what it is.

[irev210]

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.

[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.

[Fraydog]

This is going to be a dumb question, but would a lease of spectrum by Verizon of Clearwire spectrum count against Verizon's spectrum cap?

[bigsnake49]

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.

[irev210]

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.

[supert0nes]

I'm confused again. Is Verizon requesting BRS or EBS or all of it?

[bigsnake49]

I'm confused again. Is Verizon requesting BRS or EBS or all of it?

 

Leased spectrum, which is usually EBS.

[WiWavelength]

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.

 

 

AJ

[centermedic]

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.

[Fraydog]

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.

[WiWavelength]

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

[Mobilesolutions]

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

 

They would probably use it, their options are limited for the time being.

[bigsnake49]

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.

[MacPCS]

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

[ericdabbs]

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.

[WiWavelength]

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

[bigsnake49]

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.