Nextel is buying 900 MHz Specialized Mobile Radio (SMR) spectrum ...
Nextel is buying 900 MHz Specialized Mobile Radio (SMR) spectrum from Arch Wireless for $175 million plus agreement to invest $75 million in preferred stock. Nextel, which dropped out of FCC’s C-block PCS auction in recent weeks as prices…
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climbed, said it planned to advance $250 million in loans to newly created Arch subsidiary that would hold 900 MHz licenses until transfers were approved, which Nextel expects will be finalized in 6 months. Nextel Pres. Timothy Donahue said agreement would give company 20 MHz of SMR spectrum in 800 and 900 MHz bands in 52 of top 100 markets. Arch Chmn. Edward Baker said decision to sell SMR spectrum was result of company’s upgrade of its 2-way network, which is designed to increase capacity. As result, SMR licenses would be redundant to its spectrum requirements, he said. Arch has 5 narrowband-PCS licenses. Separately, Fitch assigned B+ rating to Nextel’s $1.25 billion senior note offering. Fitch said rating reflected company’s “strong operating performance,” improving credit measures, strong liquidity position. Fitch said those positive factors were “somewhat offset by an increasingly competitive wireless industry and uncertainty with respect to Nextel’s possible participation in the upcoming 700 MHz auction.”