T-Mobile Is Paying Verizon $2.3 Billion In Cash To Vastly Improve Its Coverage

Spectrum licenses regulate radio frequencies that allow wireless communication.

The deal will cost $2.365 billion in cash. The licenses are worth about $950 million. The low-band spectrum covers about 150 million people and will help T-mobile increase network coverage in cities across the United States.

T-Mobile CEO and President John Legere says the acquisition is a "great opportunity to secure low-band spectrum in many of the top markets in America."

"These transactions represent our biggest move yet in a series of initiatives that are rapidly expanding our already lightning fast network and improving its performance across the country," he says. "We will continue to find ways to advance our customers' network experience just as our bold Un-carrier moves have shaken up the wireless industry to benefit consumers."