The #1 and #4 U.S. carriers want to swap AWS-1 and PCS spectrum. The AWS-1 spectrum covers 285 counties and 59 markets, while the PCS spectrum covers 153 counties and 47 markets. The carriers will not exchange network assets or customers, only spectrum.
The proposal shows that all major carriers are looking to improve their wireless as more users switch to smartphones with data plans. The high-frequency spectrum the carriers wish to swap is helpful in urban areas where network traffic is typically most congested.
There's no dollar amount attached to the proposal, so this may be separate from earlier reports that Verizon may sell some of its rural-friendly 700 MHz spectrum to T-Mobile. That deal would reportedly see T-Mobile pay Verizon in cash and more urban-friendly spectrum.
TheStreet Ratings team rates VERIZON COMMUNICATIONS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate VERIZON COMMUNICATIONS INC (VZ) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."