In June, AT&T and Sirius XM filed a joint proposal with the FCC that would protect the adjacent satellite radio spectrum from interference and enable WCS spectrum - for the first time - to be used for mobile Internet service. AT &T claims that this proposed solution on WCS spectrum, which is still under review by the FCC, effectively creates new spectrum capacity.
AT&T said the proposed WCS rule changes and NextWave acquisition represent an alternative approach to creating additional wireless network capacity to help support skyrocketing wireless data usage on smartphones and tablets. If approved, the proposal will enable AT&T to begin initial deployment of WCS spectrum for added 4G LTE capacity, in approximately three years.
Under the terms of the agreement, AT&T will acquire all the equity of NextWave for approximately $25 million plus a contingent payment of up to approximately $25 million and, through a separate agreement with NextWave's debtholders, all of the company's outstanding debt will be acquired by AT&T or retired by NextWave, for a total of $600 million in cash.
The transaction is subject to review by the Federal Communications Commission and to other customary closing conditions.