Verizon Open to Airwave Swap as T-Mobile Seeks More Capacity

Verizon Wireless said it’s open to accepting unused airwave licenses as payment for at least part of the spectrum it’s trying to sell, giving likely bidder T-Mobile US more flexibility to prepare an offer.

Verizon may consider trading the 700-megahertz, A-block spectrum to gain capacity in other areas, Verizon Communications Chief Executive Officer Lowell McAdam said. Swaps are a common transaction between carriers that have a surplus of spectrum in some cities and a need for more in others. “T-Mobile has plenty of cash from their recent financings,” said Walt Piecyk, an analyst with BTIG LLC in New York. “That cash can be used to make future spectrum purchases.”