Cingular Getting Cash-Poor, Spectrum Heavy?
Last August, we predicted that the Cingular acquisition of spectrum from Nextwave would proceed as planned, and today we get word that the $1.4B deal has been finalized. Recall that at the time, Verizon and the FCC both indicated that they may try to block the sale and force Nextwave to sell the spectrum at public auction. Now that Cingular has that spectrum, we notice that they are also going to soon gain the former AT&T Wireless spectrum. Is there a risk that Cingular may have overpurchased spectrum and end up with too much? Not likely. Available spectrum is the first step towards improved capacity, and better quality of service – as manifested in fewer dropped calls and incomplete calls.