Verizon Wireless Adds Cox to its Cable Spectrum, Services Team

December 16, 2011, 3:01 PM EST

By Scott Moritz

Dec. 16 (Bloomberg) — Verizon Wireless agreed to a $315 million purchase of radio-spectrum licenses from Cox Communications Inc., accelerating an expansion by adding a partner for selling cable and mobile services.

Verizon Wireless, the nation’s largest mobile-phone service provider, will acquire spectrum licenses for advanced wireless services, or AWS spectrum, in cities including Boston, New Orleans, Jacksonville, Florida, Phoenix, San Diego and Las Vegas, according to a statement today.

The move, which doesn’t include Cox’s customers, follows the $3.6 billion agreement by Verizon Wireless on Dec. 2 to buy spectrum from a group of cable companies led by Comcast Corp. Verizon Wireless, co-owned by Verizon Communications Inc. and Vodafone Group Plc, looks to move into a fourth-generation technology known as Long Term Evolution, as does ATT Inc.

“Verizon Wireless has not only secured a first-mover advantage in 4G LTE, but they are having much better luck than ATT in lining up deals to secure more spectrum,” said John Butler an analyst with Bloomberg Industries. ATT, based in Dallas, has been mired in its proposed $39 billion takeover of T-Mobile USA Inc., a combination opposed by regulators.

Cox and Verizon Wireless will become agents to sell each other’s residential and commercial products and services, according to the statement. Cox said last month it would no longer sell its Cox Wireless service, while continuing to serve its customers through March 30.

Both deals by Basking Ridge, New Jersey-based Verizon Wireless call for it to offer mobile services to cable customers, while providing cable services such as broadband and pay TV to mobile customers. Both require clearance from the U.S. Federal Communications Commission.

Cable companies have been looking to add mobile services to the list of cable and broadband offerings. While Verizon Wireless has been adding cable partners, Sprint Nextel Corp. has dropped its role as wireless partner to the cable companies.

One more cable partner may soon join the Verizon Wireless alliance. Charter Communications Inc. Chief Executive Officer Michael Lovett said in an interview with Bloomberg on Dec. 5 that St. Louis-based Charter was interested in discussing a partnership with Verizon Wireless.

Cox Communications is a unit of Cox Enterprises Inc., based in Atlanta.

–Editors: Jeffrey Tannenbaum, Niamh Ring

To contact the reporter on this story: Scott Moritz in New York at smoritz6@bloomberg.net

To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net

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