Verizon Wireless purchased $315 million worth of spectrum from Cox Communications

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Verizon Wireless has added more spectrum to their portfolio this week in a deal that cost the company $315 million. Included in the deal is the fact that Verizon and Cox Communication will resell the services each company provides to the residential and commercial customers. Verizon has just completed a similar deal with other cable companies like Comcast, Time Warner Cable and Bright House Networks. The deal also gives Cox the option to resell Verizon services under their own brand name and the company will also be included in an innovation technology joint venture.
The President of Cox Communications, Pat Esser, said “These agreements provide Cox customers with key enablers to mobility, such as access to Verizon Wireless’ 4G LTE network and iconic wireless devices. We look forward to the many benefits this will bring to customers.” Cox Communication got the spectrum from a partnership with Spectrum Co., but after the spectrum auction, the company was looking into developing its own wireless network and left the partnership. The company then made a deal with Sprint Nextel and started selling wireless phone service in 2010.
Verizon has slowly been expanding its 4G LTE network further into each corner of the country and this deal will add another 28 million people under that coverage. Cox Communications subscribers will also get the benefit of the premium services that Verizon Wireless provide. In the deal made earlier this month with Spectrum Co, Verizon was able to expand their 4G LTE services to over 250 million more people at the cost of about $3.6 billion. Dan Mead, who is the President and CEO of Verizon Wireless said, “Spectrum is the raw material on which wireless networks are built, and buying the AWS spectrum now solidifies our network leadership into the future, and will enable us to bring even better 4G LTE products and services to our customers.
With an agreement like this you can clearly see that Verizon Wireless is set on taking up as much spectrum and reaching as much of the country as possible to expand their fast 4G LTE service. It’s an easy business decision on Verizon’s part and it also shows that by partnering up with cable companies throughout the country, those companies are not into developing their own wireless networks. This leaves the market wide open for current mobile carriers without the threat of another company taking market share from them.