Can Verizon Multiply Its 4G Coverage and Earnings?
Verizon (NYSE:VZ) seemed to get the better end of a deal with AT&T (NYSE:T) last week, and could be expanding its 4G LTE availability with more frequencies. But, a new device from Verizon could help the carriers expand the number of devices supported by its 4G LTE tenfold.
The deal between Verizon and AT&T would see AT&T receive 39 spectrum licenses for Verizon’s 700MHz spectrum. This would give AT&T the ability to offer coverage to about 42 million people in 18 states. However, in exchange, Verizon would receive $1.4 billion in compensation — part cash, part Advanced Wireless Services spectrum.
The AWS spectrum is the same that T-Mobile users for its 3G and 4G LTE networks. So it’s possible Verizon could be planning to use the AWS spectrum to expand its own 4G network, which is already far ahead of AT&T’s in terms of coverage. The FCC could yet delay or block this deal between the two carriers, but that might not slow down Verizon’s 4G expansion.
A new pocket-sized device from Verizon will allow the carrier to branch out the way it provides 4G coverage, and perhaps more importantly, how much data it can offer…