FCC approves Verizon’s $1 billion spectrum purchase

By David Shepardson

WASHINGTON, May 14 (Reuters) – The Federal Communications Commission said on Thursday it has approved Verizon’s 2024 $1 billion deal to acquire some spectrum assets from U.S. Cellular to expand its network capacity and coverage.

Last year, after T-Mobile acquired most of U.S. Cellular’s wireless operations and 30% of its wireless spectrum in a $4.4 billion deal, the remainder of the company changed its name to Array Digital Infrastructure.

The FCC said the deal it approved on Thursday will enhance Verizon Wireless’s “network coverage, capacity and performance, resulting in a stronger ability to meet increasing customer demand and provide a better customer experience.”

Verizon did not immediately provide comment.

The FCC has been moving to approve a number of spectrum transactions even as it prepares to auction additional wireless spectrum to address the rising demand among U.S. consumers and businesses.

“Scale matters a lot in today’s modern connectivity market, and the spectrum is going in the hands of players that are lighting it up, immediately, loading it up, using it to bridge the digital divide,” FCC Chairman Brendan Carr told Reuters in an interview this week. “We’re facilitating as many transactions and auctions as we can do to help make that happen.”

On Tuesday, the FCC approved EchoStar’s $40 billion sale of wireless spectrum to SpaceX and AT&T.

SpaceX is gaining access to exclusive-use spectrum for a Starlink device-to-device service ​and other offerings. The FCC said AT&T’s low-band spectrum will expand coverage across the United States, ​especially in rural and underserved areas.

(Reporting by David Shepardson, Editing by Franklin Paul)