First Lower 700 MHz Spectrum License Sale Agreement Inked with Nortex Communications

UPDATE - Friday, Feb. 15: Verizon Wireless and Nortex Communications completed this spectrum purchase on February 12, 2013.

Nortex Communications, an independent telephone company based in Muenster, TX, has signed a purchase agreement with Verizon Wireless to acquire the Texas RSA 6-Jack 700 MHz lower B-block license which covers a four-county area northwest of Dallas, subject to FCC approval. The sale is the first to be signed as part of Verizon Wireless’ previously announced plans to offer for sale its lower 700 MHz licenses to other interested parties.

Verizon Wireless decided last spring to explore the sale of the lower 700 MHz A and B Block spectrum it had acquired in FCC Auction 73 in 2008. Since the 700 MHz licenses cover numerous major cities as well as dozens of smaller and rural markets across the country, the sale process was designed to encourage a wide variety of potential buyers, small and large, to participate. The company moved forward with the sale process as soon as the FCC approved Verizon Wireless’ acquisition of AWS spectrum as part of several transactions in August.  

Although the sale to Nortex is the first to be signed as a result of the announced sale process, Verizon Wireless has previously sold 24 of its lower 700 MHz spectrum licenses to seven different telecommunications companies operating in thirteen states. Verizon Wireless is also getting spectrum into the hands of 20 rural operators through its “LTE in Rural America” program. The company is currently evaluating bids for its other lower 700 MHz spectrum licenses. All transactions will require appropriate regulatory approvals.

Stephens Inc., an independent financial services firm, and Loop Capital Markets LLC, a minority-owned full service investment bank, managed the offering process.