Cox Communications Signs Agreement to Sell Its 20 MHz Advanced Wireless Services Spectrum to Verizon Wireless

Cox Communications, provider of advanced digital video, Internet, and telephone services over its own nationwide IP network, has announced the signing of an agreement to sell its 20 MHz Advanced Wireless Services (AWS) spectrum licenses to Verizon Wireless, provider of broadband and other wireless and wireline communications services.

The Advanced Wireless Services spectrum from Cox Communications which currently covers 28 million POPs will be sold to Verizon Wireless for $315 million. By acquiring Cox's AWS spectrum, Verizon Wireless has taken a critical step for ensuring that the increasing demands by customers for mobility services will be effectively addressed. The agreement to sell between the two companies does not however, include the 700 MHz spectrum licenses of Cox Communications nor its Wireless customer accounts and assets.

Both Cox Communications and Verizon Wireless will become independent agents for selling each other's residential and commercial products and their suite of services via their own respective sales channels. After a certain period of time, Cox can exercise the option to sell the services of Verizon Wireless on a wholesale level. Additionally, Cox is also hopeful of signing agreements with Verizon' innovation technology joint venture which in addition to Verizon Wireless includes Comcast, Time Warner Cable as well as Bright House Networks for enhanced integration of both wireline and wireless products and services.

In a release, Pat Esser, president of Cox Communications, said that, “These agreements provide Cox customers with key enablers to mobility, such as access to Verizon Wireless' 4G LTE network and iconic wireless devices. We look forward to the many benefits this will bring to customers.”

Sale and transfer of the 20 MHz Advanced Wireless Spectrum to Verizon Wireless will only be completed once it receives approval by the Federal Communications Commission. The agreement to sell will also be reviewed under the Hart-Scott Rodino Act as well as other customary conditions. In an earlier announcement, Cox Communications had said that it would not continue the sale of its Wireless service. It will however, continue with offering its services to its wireless customers until March 30, 2012.

In other news, Cox Communications recently announced that it will launch 62 new HD channels for Hampton Roads customers on December 20, 2011. With these HD channel launches, Hampton Roads customers now have access to 103 HD channels.