Verizon selling 700MHz spectrum, but only if government approves its AWS purchase

From ENG




VERIZON WIRELESS TO CONDUCT SPECTRUM LICENSE SALE

Stephens Inc. to Manage Offering Process

BASKING RIDGE, N.J. – Verizon Wireless today announced plans to
conduct an open sale process for all of its 700 MHz A and B spectrum
licenses in order to rationalize its spectrum holdings. The licenses
cover dozens of major cities across the country, as well as a number
of smaller and rural markets.

Verizon Wireless obtained the 700 MHz A and B licenses, as well as
nationwide 700 MHz upper C licenses (with the exception of Alaska
which has since been acquired), in FCC Auction 73 in 2008. Verizon
Wireless is deploying its 4G LTE network, which currently covers more
than 200 million people, on its nationwide 700 MHz upper C spectrum.
If Verizon Wireless is successful in acquiring additional AWS
(Advanced Wireless Services) spectrum licenses, it will use AWS
spectrum in conjunction with its 700 MHz upper C band spectrum to
deploy additional LTE capacity.

Accordingly, the sale of the A and B licenses is contingent on the
close of Verizon Wireless' pending purchases of AWS licenses from
SpectrumCo (an entity jointly owned by Comcast, Time Warner Cable, and
Bright House Networks), Cox and Leap Wireless. These transactions are
at varying stages of review by the Federal Communications Commission
(FCC) and the Department of Justice (DOJ) and are expected to close by
mid-summer.

The company is announcing the sale plans now and will begin the
process of soliciting interest from potential buyers to ensure the
process can move forward quickly once the AWS license transfers have
been completed.

"Since wireless operators, large and small, have expressed
concern about the availability of high-quality spectrum, we believe
our 700 MHz licenses will be attractive to a wide range of
buyers," said Molly Feldman, vice president of Business
Development for Verizon Wireless. "Moreover, provided our
acquisition of AWS spectrum is approved, our open sale process will
ensure these A and B spectrum licenses are quickly and fairly made
available for the benefit of other carriers and their
customers."

Stephens Inc., a nationally recognized, independent financial services
firm based in Little Rock, Arkansas, has been engaged to manage the
offering process. Interested parties may contact Stephens Inc. at
vz_spectrum@stephens.com or 501-377-8134. Stephens Inc. will later
release information about efforts to reach out to potential bidders,
including minority-owned and female-owned businesses, to participate
in the process. All sales will be subject to applicable regulatory
approvals.

Editor's Note: Following is a list of the markets covered by the 700
MHz A and B licenses:


A Block Licenses (Economic Areas)

New York, Philadelphia, Washington-Baltimore, Orlando, Miami, Tampa,
Atlanta, Cincinnati, Cleveland, Detroit, Grand Rapids, Indianapolis,
Kansas City, Minneapolis, Oklahoma City, Dallas, Austin, Houston, San
Antonio (CMA area only), Denver, Los Angeles, Fresno, San Francisco
and Sacramento

B Block (Cellular Market Areas)

Los Angeles, Chicago, Miami, Cincinnati, Rochester, Memphis, Oklahoma
City, Greensboro-Winston Salem, Charlotte, Youngstown, Raleigh-Durham,
West Palm Beach, Fort Collins, Pueblo and Colorado 4 – Park; Bradenton
and Florida 3- Hardee; Athens, GA; Idaho 5 – Butte; Lake Charles,
Alexandria, Louisiana 1- Claiborne, Louisiana 2 – Morehouse and
Louisiana 3 – De Soto; Maryland 3 – Frederick; Billings, Great Falls,
Montana 8 – Beaverhead, and Montana 9 – Carbon; Nevada 3 – Storey; New
Mexico 5 – Grant and New Mexico 6 – Lincoln; Rapid City and South
Dakota 1 – Harding; Lubbock, Amarillo, Waco, Longview-Marshall, Tyler,
Texarkana, Odessa, Laredo, Midland, Texas 2 – Hansford, Texas 6 – Jack
and Texas 18 – Edwards; Utah 1 – Box Elder, Utah 4 – Beaver, Utah 5 –
Daggett and Utah 6 – Piute; Virginia 10 – Frederick; Washington 2 -
Okanogan; Casper and Wyoming 2 - Sheridan