AT&T Buys Verizon Spectrum For $1.9 Billion

Spectrum is part of U.S. carrier's 700MHz B block.

Days after paying $780 million in cash to buy Atlantic Tele-Network Inc's Alltel wireless business, U.S. carrier AT&T has acquired wireless airwaves from Verizon Wireless for $1.9 billion in cash.

The spectrum being bought is part of Verizon's 700MHz B block, which it doesn't utilize. As part of the deal, AT&T will give up a batch of wireless licenses covering certain western markets. AT&T said the licenses it's buying from Verizon covers a population of 42 million within 18 U.S. states.

"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," said Wells Fargo analyst Jennifer Fritzsche.

During the August of 2012, AT&T, which is investing $14 billion to upgrade its wireless networks in order to expand 4G LTE coverage, purchased wireless company NextWave Wireless Inc for its spectrum holdings for $50 million and $550 million of debt.

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