Verizon and Leap trade spectrum for LTE, EV-DO buildouts

Verizon Wireless and Cricket provider Leap Wireless announced a significant exchange of spectrum that, if approved by the Federal Communications Commission, will allow Leap to launch LTE service in Chicago and will allow Verizon to bolster its CDMA EV-DO and LTE networks in locations across the country.

The companies filed the spectrum exchange proposal with the FCC last week, arguing the agency should approve the transaction since the spectrum licenses in the transaction mostly haven't been built out and cover a relatively small percentage of the population. The licenses to be acquired by Verizon Wireless cover approximately 18.7 million POPs; the Chicago license to be acquired by Leap covers around 11 million POPs. Such spectrum swaps are relatively common among the nation's wireless carriers, though they can be worth hundreds of millions of dollars. In the exchange, Leap is to get a 12 MHz 700 MHz A Block license covering Chicago that Verizon paid $152 million for during the FCC's 700 MHz auction in 2008. Leap said it currently owns 10 MHz of spectrum in Chicago, and will use the additional spectrum to launch LTE service in the Windy City. Verizon currently offers LTE service in Chicago using its 700 MHz C Block spectrum.