Verizon has found more wireless spectrum in the cable industry. It has signed a deal with Cox to acquire wireless spectrum in exchange for $315 million and resale agreements similar to those that Verizon cut with other cable companies earlier in the month.
Spectrum is a finite resource, and Verizon is doing all it can to acquire more spectrum without taunting the U.S. government’s regulatory agencies with $39 billion acquisition deals. The Cox spectrum covers 28 million people, according to MultiChannel News, and Cox doesn’t need it anymore following its decision to get out of the wireless business earlier this year. Verizon won’t acquire Cox’s current customers, however, who will receive service from Cox until March of next year.
Earlier this month Verizon dropped $3.6 billion on wireless spectrum assets formerly held by Comcast (NSDQ: CMCSA), Time Warner (NYSE: TWX), and Bright House Networks and agreed to resell the cable services of those companies through its sales channels while asking them to promote Verizon’s wireless services to their customers. The moves give Verizon additional spectrum needed to build faster and broader 4G wireless networks without being nearly as controversial as AT&T’s likely doomed bid for T-Mobile.