AT&T purchasing spectrum from Verizon for $1.9 billion

AT&T has purchased spectrum from Verzion for $1.9 billion in cash, the company announced on Friday. AT&T also recently purchased Atlantic Tele-Network where they got more spectrum and around half a billion customers.

“While on the surface this appears to be a rich price, we would note that the B block licenses that AT&T is acquiring are concentrated in major metropolitan markets,” Jennifer Fritzsche, a Wells Fargo analyst said.

AT&T has bought airwaves which cover around 42 million people in 18 states in the United States.

The deal is expected to close in the second half of 2012, subject to regulatory approval.

Source : Reuters