AT&T Inc.(NYSE:T) is
gathering about $2.6 billion in deals for catching up with Verizon, the
wireless carrier that has vaulted ahead in the race to store the most precious
asset of the industry.
AT&T has forwarded
a proposal of at least 24 deals in the last 4 months for the rights to spectrum
technology that incorporates radio waves to transmit data connections and
mobile phone calls. Verizon has won US approval on 23rd August to
achieve airwave rights from Comcast and three more cable companies for $3.9
billion.
According to an analyst
at Stifel Nicolaus & Co in Baltimore, Chris king, apart from keeping up
with Verizon, AT&T’s buying binge is intended to relieve pressure on its
network as data traffic from tablets and smartphones taxes its wireless
exposure. Getting more government licenses to use spectrum technology provides
companies with greater capacities on their networks to handle increasing demand
King also said that
AT&T seems to be trying to get its arms around as many spectrum rights as
possible.
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As per John Hodulik, a
UBS AG analyst, AT&T’s plans are predicted to boost its most significant
spectrum holdings by 62% in the 100 biggest US markets. The proposals made by
AT&T are facing review by the Federal Communications Commission. The
proposals include a $600 million purchase of NextWave Wireless. It is a
radiowave deal with Sirius XM Radio Inc. to utilize satellite signals.
An AT&T spokesman
in Dallas, Brad Burns has said that AT&T is working to unveil unused
spectrum for mobile internet usage and adding capability to keep up the pace
with increasing consumer demand. An FCC spokesman, Mark Wigfield has refused to
comment on this.
As per the statement of
Tim Farrar of TMF Associates Inc., AT&T is expected to be the highest
bidder for airwaves that Verizon is willing to sell as it will fill in the gaps
in the company’s spectrum holdings. Farrar has estimated that AT&T will
have to pay $2 billion for the airwaves that Verizon has proposed to sell.
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