American telecom company AT&T Inc. is reportedly considering a bid for a block of spectrum licenses held by Verizon Wireless. This would set up a potential contest for the airwaves with smaller rival T-Mobile US Inc.
The Wall Street Journal (WSJ) in a report said the block of airwaves is highly valued for its ability to carry signals for long distances and penetrate buildings. Verizon bought the A-block spectrum for about USD2.4 billion.
The A-block spectrum has a frequency of 700 megahertz. It is expected to command up to USD2.75 billion in a sale.
T-Mobile has already raised about USD4 billion via sales of stock and debt to build a war chest for acquiring the spectrum, the report said.
According to WSJ, Verizon last year said that it would try to sell the A-block spectrum. At that time, the company is seeking regulatory approval for a USD3.9 billion deal to buy a different piece of spectrum from a group of cable companies.
Verizon recently said that it remains open to a deal. The timing of any sale, however, remained unclear, the report said.
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