In return, Verizon to receive cash and AWS spectrum in certain markets

T-Mobile could potentially be ready to wrap up a big deal for some of Verizon's spectrum. According to a report from Bloomberg, the carriers are nearing a deal to transfer 700MHz "A block" spectrum from Verizon to T-Mobile for somewhere in the neighborhood of $3 billion. Verizon initially purchased the 700MHz spectrum in 2008 for $2.6 billion. Further, the deal may also see T-Mobile transferring some AWS (that's 1700/2100MHz) spectrum to Verizon for certain markets.

If approved by the FCC, the 700MHz spectrum transfer would be applicable to about 150 million people, indicating that this would be quite a large pickup for T-Mobile. The nation's fourth-place carrier currently holds spectrum in the 1900MHz and AWS bands, which is less expensive and fully functional, but can't always penetrate buildings in dense cities properly.

Adding 700MHz could be just what T-Mobile needs to round out its network offerings, so long as it plans to have the spectrum for a good amount of time and starts to deploy devices that support the frequencies. Sources claim the deal could be finalized as soon as next week.

Source: Bloomberg