T-Mobile Swap Gives Verizon Spectrum, $2.4B in Cash

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Jan. 6 (Bloomberg) -- T-Mobile agreed to buy airwaves from Verizon Wireless for about $2.4 billion in cash as part of a spectrum swap that will give both companies more network capacity in areas where they need it. Cristina Alesci reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

And technology for along time and i find spectrum deals hard to understand, which is why i am lucky that christina is helping me now.

Is rise in helping t-mobile right now?

They are helping themselves.

This is spectrum that they were not using anyway and they are trying to unload it.

They have not found a buyer to pay for this spectrum, this was buyer and seller coming together on price at the end of the day.

Remember, to $.4 billion in cash is going to verizon, but t- mobile will be giving verizon some very valuable spectrum that they want to build out their lte network.

This is crucial.

From the standpoint of t-mobile, they are getting that low band spectrum that goes far and can penetrate office walls and -- as well.

The 700 megahertz spectrum, not to geek out, it lets them do the things that they have tried to do with data.

This is valuable for t-mobile because why?

Exactly.

It is trying to be a credible competitor to verizon wireless and at&t, which has been tough as number three.

Trying to be a more credible competitor in an environment where people are streaming videos for hours at a time, gobbling up bandwidth.

Number two, it could make it more attractive down the line for the likes of sprint, which has a lot of money and backing from softbank.

If they can make themselves attractive, the two of them combined -- although the technologies are different, it will be difficult.

It is in fact concentrated spectrum.

What is interesting is yes, it makes a deal more attractive, but if they can have more customers, they need a better business.

The deal is like a nice byproduct of this, if they decide to go down that road, but as emily pointed out, t-mobile has been very aggressive, calling themselves the uncarrier , providing services to customers without long-term contracts that give consumers so upset.

At the end of the day they are billing themselves differently from the current options.

And then there was the profile from business week couple of weeks ago.

This text has been automatically generated. It may not be 100% accurate.

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