AT&T (NYSE:T) Expands 700MHz Band with Qualcomm (Nasdaq:QCOM) Deal

The acquisition of 12MHz of 700MHz spectrum from Qualcomm expands AT&T's (NYSE:T) 700Mhz portfolio, which some feel is the highest quality to work in.

Barclays (NYSE:BCS) said, "This morning, AT&T announced plans to acquire 12MHz of 700MHz (D and E block) spectrum covering 70MM POPs and 6MHz (D block) of 700Mhz spectrum covering 230MM POPs from QCOM for $1.925BN, which amounts to approximately $0.87 per MHz-POP. Overall, we don't view the sale as a surprise as QUALCOMM (Nasdaq:QCOM) had been shopping the spectrum. The deal expands T's spectrum portfolio further into the 700MHz band, arguably the highest quality spectrum available for wireless carriers. Funding the purchase should not be a problem as AT&T has ample liquidity with more than $3 billion in cash (end of 3Q) and an $8-billion revolving credit facility."

Barclays maintains an "Equalweight" rating on AT&T, which closed Tuesday at $29.07, down $0.06, or 0.21 percent. Barclays has a price target of $32 on them.