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 portfolioâ€ .
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.