T-Mobile US Inc. (NYSE: TMUS) is buying wireless spectrum from U.S. Cellular (NYSE: USM) for $308 million in cash.
The spectrum covers 29 markets in the Mississippi Valley region, including Kansas City, Memphis, Little Rock, Birmingham, Ala., New Orleans and Louisville, Ky.
The purchase will allow T-Mobile to continue to spread its 4G LTE network to new markets, and expand the network’s bandwidth.
“In today’s marketplace, spectrum is gold,” says John Legere, president of T-Mobile.
Several wireless companies have purchased wireless spectrum in the past few months. In May, ITalk Inc. agreed to buy Eezinet Corp. in order to acquire three wireless spectrum licenses. Also in May, Sprint Nextel Corp. (NYSE: S) closed a deal for wireless spectrum from U.S. Cellular for $480 million. In January, AT&T (NYSE: T) announced it was buying spectrum from rival wireless company Verizon Wireless Inc. (NYSE: VZN) for $1.9 billion.
On June 27, Dish Network Corp. announced it was dropping its unsolicited offer to buy Sprint, which has an offer from Clearwire Corp.