AT&T Completes $1.9B Purchase of 700 MHz LTE Spectrum

AT&T confirmed that it has completed the purchase of 700 MHz spectrum licenses from Qualcomm.

For about $1.9 billion, AT&T gains coverage of more than 300 million people. AT&T received FCC approval for the purchase on December 22.

AT&T intends to use the spectrum to expand its LTE network. Qualcomm previously had planned to leverage the spectrum for its FLO TV to broadcast TV to cellphones, but discontinued the product due to a lack of consumer interest on March 27 of this year. The transaction to AT&T includes unpaired Lower 700 MHz D and E Block licenses that cover all of the United States with 6 MHz or 12 MHz of Lower 700 MHz spectrum, along with five 6 MHz Economic Area licenses in the Lower 700 MHz E Block that apply to five metropolitan areas - New York, Boston, Philadelphia, Los Angeles, and San Francisco. According to the FCC, the metropolitan licenses cover more than 70 million people.

Qualcomm originally purchased the 700 MHz spectrum for $125 million and supported FLO TV with an additional $558 million of spectrum purchase.