Verizon Wireless and Qwest Communications today announced they have completed the transaction, previously announced in July 2004, for Verizon Wireless to purchase Qwest Wireless' spectrum licenses and certain network assets for $418 million. These licenses will increase Verizon Wireless' capacity in key existing markets as well as expand the company's network into new markets.

The agreement includes spectrum licenses in 62 markets in 14 western and mid-western states, covering a population of 30.8 million people. These licenses, all in the 1900 MHz PCS frequency range, average nearly 10 MHz per market. The transaction also includes Qwest Wireless' network switching centers, cell sites and related network equipment, which operate on the CDMA standard, the same as the Verizon Wireless network.

Fifty-four of the licenses are in markets where Verizon Wireless already operates its network, and will be used to expand capacity to meet growing demand for voice and data services. These markets include the major cities of Phoenix, Albuquerque, Tucson, Salt Lake City, Minneapolis-St. Paul, Denver, Portland (Ore.), Seattle, and Omaha.

The spectrum licenses also include several new markets for Verizon Wireless, and will expand the company's license coverage to an additional 1.5 million people. These new markets include: Rochester, Minn.; Lincoln, Neb.; and Longview, Wash. The transaction does not include any subscribers.