Atlanta-based cable company Cox Communications says it has agreed to sell some of its airwave licenses to Verizon Wireless for $315 million. The two companies also agreed to become agents to sell each other’s residential and commercial products and services.
This will give Verizon more capacity for customers to make telephone calls and transmit text messages, videos and other data quickly over its high-speed network. With the rising number of customers buying smartphones, tablets and other mobile devices, the wireless industry been subject to clogged networks, which can lead to dropped calls or spotty mobile service.
The licenses sale, which would need the Federal Communications Commission’s approval, is similar to deals struck by Verizon Wireless with three other cable companies two weeks ago. Comcast, Time Warner Cable and Bright House Networks signed co-marketing agreements with Verizon.
"These agreements provide Cox customers with key enablers to mobility, such as access to Verizon Wireless’ 4G LTE network and iconic wireless devices,” said Pat Esser, president of Cox Communications. “We look forward to the many benefits this will bring to customers.”
Unlike the other cable companies, Cox had taken initial steps to use its spectrum. But it gave up on its plans to build a wireless network last month, saying it couldn’t compete on wireless service with bigger cellphone companies.
Some of the spectrum licenses sold includes Cox's Macon service territory. Friday’s agreement does not include Cox’s 700MHz spectrum licenses or the company’s Cox Wireless accounts.
Privately held Cox is the third-largest cable company in the country.
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