Verizon buys 122 wireless spectrum licenses from Comcast, Time Warner Cable for $3.6 Billion

US mobile operator Verizon today announced it is to boost its wireless coverage across the U.S with the $3.6 billion purchase of 122 advanced wireless services licenses from cable giant Comcast, Time Warner Cable and Bright House Networks.

Whilst the U.S Government is set to open its wireless spectrum to mobile operators, Verizon isn’t taking any chances and has moved to secure more bandwidth for its 4G LTE services so that it can continue to serve its expanding network of customers and offer reliable and fast data downloads.

As part of the deal, Comcast will receive $2.3 billion from the sale, with Time Warner Cable receiving $1.1 billion – both of which own around 95% of the company SpectrumCo. Bright House Networks, which owns 5.3% of the company, will receive $189 million.

Following approval of the deal, each of the companies will enter several agreements to sell each other’s products and services:

Through these agreements, the cable companies, on the one hand, and Verizon Wireless, on the other, will become agents to sell one another’s products and, over time, the cable companies will have the option of selling Verizon Wireless’ service on a wholesale basis. Additionally, the cable companies and Verizon Wireless have formed an innovation technology joint venture for the development of technology to better integrate wireline and wireless products and services.

The move sees Verizon solidify its core networks to compete with rival AT&T, which has suffered from issues surrounding its acquisition of T-Mobile USA. The company recently withdrew its merger application from the FCC following the regulators announcement it would seek approval via a federal judge.