AT&T will pay $25 million to shareholders with another contingent payment of $25 million. Additionally, AT&T will purchase $550 million worth of NextWave debt.
NextWave controls licenses for Wireless Communication Services (WCS), which will begin being used (if FCC approved) next year thanks to a deal between AT&T and Sirius XM Radio.
"WCS spectrum was first auctioned in 1997, but has not been utilized for mobile Internet usage due to technical rules designed to avoid possible interference to satellite radio users in adjacent spectrum bands," adds AT&T. The new plan also "effectively creates much needed new spectrum capacity."
If it passes regulatory hurdles, the deal should close by the end of the year.
Written by: Andre Yoskowitz @ 2 Aug 2012 20:55