Washington: The Federal Communications Commission has approved Verizon’s $1 billion acquisition of spectrum assets from U.S. Cellular, a move aimed at strengthening the company’s wireless network capacity and expanding coverage across the United States.
The approval, announced on Thursday, comes amid increasing demand for wireless connectivity from consumers and businesses nationwide.
According to the FCC, the transaction will improve Verizon Wireless’ network performance and help the company better meet growing customer demand.
“The deal will enhance network coverage, capacity and performance, resulting in a stronger ability to meet increasing customer demand and provide a better customer experience,” the commission said in a statement.
The spectrum sale follows last year’s major restructuring of U.S. Cellular’s operations after T-Mobile acquired most of the company’s wireless business and around 30 per cent of its wireless spectrum assets in a $4.4 billion agreement. Following the transaction, the remaining business was renamed Array Digital Infrastructure.
Kathy Grillo, Verizon’s senior vice president for public policy and government affairs, welcomed the FCC decision, saying the additional spectrum would strengthen the company’s already extensive network infrastructure.
“The additional spectrum will allow us to better serve our customers as we continue to bolster our already-robust network,” Grillo said.
The FCC has accelerated approvals of spectrum-related transactions in recent months as it prepares for future wireless spectrum auctions intended to address rapidly rising connectivity demands.
Brendan Carr said access to spectrum has become increasingly important in the modern telecommunications market.
“Scale matters a lot in today’s modern connectivity market, and the spectrum is going in the hands of players that are lighting it up immediately, loading it up and using it to bridge the digital divide,” Carr told Reuters in an interview.
He added that the FCC is working to facilitate as many transactions and auctions as possible to improve nationwide connectivity, particularly in underserved and rural regions.
Earlier this week, the FCC also approved EchoStar’s $40 billion spectrum sale to SpaceX and AT&T.
Under that agreement, SpaceX will gain access to exclusive-use spectrum for its Starlink direct-to-device services and other satellite communication offerings, while AT&T is expected to use the low-band spectrum to expand wireless coverage in remote and underserved areas across the country.
