T-Mobile to buy spectrum licenses from Verizon to boost service

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BELLEVUE — T-Mobile said Monday that it's reached deals to buy spectrum licenses from Verizon Wireless for $2.37 billion in cash, allowing it to improve certain kinds of cellular service in markets across the U.S.

The agreements also include the transfer of other kinds of spectrum licenses from T-Mobile to Verizon Wireless that the companies value at about $950 million.

The deals, combined with T-Mobile's existing holdings, will give T-Mobile low-band spectrum in nine of the top 10 U.S. markets.

Low-band spectrum boosts cellular coverage inside buildings and in rural areas. It also has the ability to travel greater distances than high-band spectrum, making it a more efficient way to provide coverage at the edge of cities and in less densely populated areas.

Combined with T-Mobile's existing holdings, the low-band spectrum will cover about 158 million people in U.S. markets including New York, Los Angeles, Dallas, Houston, Philadelphia, Atlanta, Washington, D.C., and Detroit.

T-Mobile USA, the No. 4 U.S. carrier, is owned by Germany's Deutsche Telekom AG.