AWS spectrum sold for $150.1 M, T-Mobile to launch 3G services on spectrum (US)
Nextwave Wireless Inc. (owns spectrum across the world) sold nearly two-thirds of its Advanced Wireless Services (AWS)spectrum for $150.1 million. The spectrum went to four different buyers. T-Mobile USA is the big buyer for roughly $98 million. Nextwave spent a total of about $115 million for 154 licenses during the auction.T-Mobile USA, which spent $4.2 billion for spectrum during the AWS auction, is relying on that spectrum to launch 3G services. In its deal with Nextwave, T-Mobile USA picked up a 20 megahertz license covering Pittsburgh; a 20-megahertz license covering Sacramento, Calif.; a 10 megahertz license covering New Orleans; and a 10 megahertz license covering Little Rock, Ark.
Atlantic Wireless, L.P., ACS Wireless Inc., and MetroPCS AWS L.L.C. bought other licenses from Nextwave totaling $52.6 million.
Allen Salmasi, CEO and president of Nextwave said, The sale of our AWS spectrum is just the first step in maximizing the value of our spectrum portfolio†.
Nextwave said it plans to deposit $75 million of the proceeds into a restricted cash collateral account and the other half is to be used to redeem a portion of the notes. When the sale finalizes, Nextwave said it will still own significant spectrum positions parts of the Northeast, Florida and California.
