T-Mobile makes $3.3 billion deal with Verizon to improve cell coverage

BY newsdesk  January 6, 2014 at 2:13 PM EST

In March 2013, T-Mobile USA CEO John Legere bucked industry norms and eliminated annual contracts for all its monthly cell phone plans. At the 2014 CES, the carrier plans to announce further

The Associated Press reported Monday that T-Mobile has reached a deal with Verizon to buy low-band spectrum licenses in order to boost coverage inside buildings and in rural areas. T-Mobile is reportedly paying its competitor $2.37 billion in cash and $950 in other spectrums for the new licenses.

Pending regulatory approval, the deal is expected to close in mid-2014.

T-Mobile USA, the fourth largest carrier in America, launched its “un-carrier” movement in 2013, bucking many industry norms. Last March, it offered customers payment plans and eliminated contract requirements to buy new devices. In October, the company announced unlimited data and texting worldwide at no extra charge and 200 mb of 4G LTE data per month to any tablet user for free, including non-T-Mobile customers.

T-Mobile is set to announce more big changes to their customers’ cell phone plans at the 2014 Consumer Electronics show in Las Vegas, which begins Tuesday.

“Just wait until CES to hear what pain points we are eliminating next,” T-Mobile USA CEO John Legere wrote in an executive statement. “The competition is going to be toast!”

Before T-Mobile’s Un-carrier 4.0 event at CES, AT&T announced that they plan to offer a $200 credit to T-Mobile customers who switch to AT&T plans. The “switcher credit” wouldn’t be offered to Sprint or Verizon customers.

“Consumers won’t be fooled,” Legere wrote in response to AT&T’s promotion. “Nothing has changed; customers will still feel the same old pain that AT&T is famous for.”