Verizon Wireless boosts spectrum in Pennsylvania

Verizon Wireless is continuing its hunt for spectrum, announcing today a deal with NTELOS to purchase 10 MHz of PCS spectrum in Pennsylvania for $15.5 million.

The deal is a small one compared to the massive spectrum buys Verizon has made in recent months. In the past month Verizon has negotiated two separate deals with NextWave Telecom to buy licenses in 23 markets for $3.93 billion. The vast majority of the price tag, however, went to pay for NextWave’s valuable New York City licenses. Verizon paid $930 million for a single NYC 10 MHz license in October, and earlier this month agreed to pay $3 billion for an additional 20 MHz as well as the spectrum in 22 other markets. The agreements would give Verizon a combined 65 MHz of spectrum in the most valuable wireless market in the U.S. While they still face regulatory scrutiny, the deals fall below the arbitrary spectrum cap regulators used to weigh Cingular Wireless’s acquisition of AT&T Wireless last month.

In July, Qwest Communications agreed to sell its PCS assets and wireless network infrastructure to Verizon Wireless in 62 markets in western and midwestern states for $418 million. In April, Verizon said it would go after the PCS spectrum Nextel Communications was pursuing in its rebanding agreement with the FCC, offering to bid a minimum of $5 billion for the 10 MHz of national spectrum if it went up for auction. Earlier this month, Nextel and Verizon settled their differences, however, and Verizon agreed not to challenge Nextel for the spectrum.

The Pennsylvania licenses cover 2.1 million people in Harrisburg, Lancaster, Reading and York. Verizon said it expects the transaction to close in the second quarter of 2005. NTELOS is a regional carrier serving the Mid-Atlantic States.