Now that the U.S. AWS-3 spectrum auction is over, two of the biggest bidders in the auction are reportedly set to sell off further assets to fund their billions of dollars in spectrum and other business investments.
According to Reuters, which cited unnamed sources, AT&T is selling some data centres worth around $2 billion as it seeks ways to reduce its debt and raise funds for investments. The company emerged as the biggest bidder in the AWS-3 auction, spending $18.2 billion on 251 spectrum licences and accounting for almost half of the total $44.9 billion raised.
The company also plans to buy bankrupt NII Holdings Inc’s wireless business in Mexico for $1.875 billion. The company only recently completed the $2.5 billion purchase of Iusacell.
Meanwhile the Wall Street Journal reported that Verizon is close to selling assets worth up to around $15 billion, including mobile phone towers and part of its wireline business. The Journal also quoted unnamed sources.
Verizon acquired a total of 181 licences for $10.4 billion in the AWS-3 auction. It also took on massive debt to fund the $130 billion buyout of Vodafone’s 45% stake in Verizon Wireless.
