T-Mobile said Monday it will purchase unused airwaves from Verizon Wireless for $2.36 billion in cash to improve service in metro Atlanta and seven other major cities.
Acquiring the low-band spectrum will allow the No. 4 mobile phone service provider to improve coverage within buildings, but also in rural and other less densely populated areas.
As part of the deal, T-Mobile will transfer certain of its spectrum licenses to Verizon valued at $950 million.
T-Mobile said it will begin rolling out service and compatible mobile handsets for the low-band spectrum in the fourth quarter. The company also said it will realign blocks of spectrum in metro Atlanta and Northern California.
In addition to Atlanta, the company said the deal with Verizon Wireless will help T-Mobile to expand its reach and improve service in New York, Los Angeles, Dallas, Houston, Philadelphia, Washington D.C., and Detroit.
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