Cox Communications to sell spectrum to Verizon

Cox Communications Inc. has agreed to sell the wireless spectrum it acquired when it planned to build its own mobile phone network to the sister company of one of its chief rivals.

Verizon Wireless, a division of Verizon Communications Inc., plans to buy Cox’s 20-megahertz wireless spectrum licenses for $315 million. Cox’s licensed spectrum area covers a population of 28 million.

Verizon Communications offers landline telephone, high-speed Internet and FiOS TV video service in direct competition with Cox in Hampton Roads and other areas where Cox operates.

Cox got into the wireless business in late 2010 to add the one area of service in which it wasn’t competing with Verizon. It initially announced plans to construct its own wireless network. A month ago, the cable provider announced that it was discontinuing its wireless service.

The spectrum sale includes an agreement between Cox and Verizon Wireless to sell each other’s products and services. That allows Cox to continue to offer customers a wireless option – and complete a full “bundle” of telecommunications services.

In the future, Cox could carry Verizon Wireless devices and set up service plans at its own store locations, and Verizon Wireless would similarly sell Cox’s equipment and service plans at its stores, said Todd Smith, a Cox spokesman at its headquarters in Atlanta.

He added that Cox would not sell the phone, Internet or TV services of Verizon’s parent company.

The Federal Communications Commission must approve the deal. The agreement with Verizon Wireless excludes Cox’s 700-megahertz spectrum licenses and Cox Wireless customer accounts.

Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com