Cox added to Verizon's spectrum stockpile on Friday, agreeing to sell its 20-MHz spectrum licenses to Verizon for $315 million as part of a deal to resell each other's services.
Cox said that it would sell its 20-MHz Advanced Wireless Services (AWS) spectrum licenses covering 28 million points of presence, or POPs. Cox did not sell its 700-MHz licenses.
Verizon and other carriers have tried to acquire additional spectrum to avoid congestion, both for voice and data, as more consumers turn to smartphones.
Perhaps more importantly, however, Cox said it expects to enter into arrangements with the innovation technology joint venture formed by Verizon Wireless, Comcast, Time Warner Cable, and Bright House Networks to better integrate wireline and wireless products and services.
On Dec. 2, Verizon agreed to pay $3.6 billion to purchase more than 100 spectrum licenses from three of the nation's top cable providers, a move that comes as rival AT&T is pumping its cash into its troubled bid for T-Mobile. Verizon bought its licenses from SpectrumCo, a holding company for the licenses made up of Comcast, Time Warner Cable and Bright House.
"These agreements provide Cox customers with key enablers to mobility, such as access to Verizon Wireless' 4G LTE network and iconic wireless devices," said Pat Esser, president of Cox Communications. "We look forward to the many benefits this will bring to customers."
Cox said that it obtained the right to sell Verizon's commercial and consumer services, and Verizon did the same for Cox. Over time, Cox may gain the ability to sell Verizon's products on a wholesale basis, presumably under its own brand name. Cox announced last month that it would no longer sell its Cox Wireless service, but would continue to provide service to its wireless customers through March 30, 2012.
The spectrum sale will be subject to approval by the FCC, Cox and Verizon noted.
Of late, Verizon has also said that it will provide account-based billing for users of multiple devices in 2012, and has been said to be challenging Netflix with a video-streaming service that it will make available to non-subscribers.