T-Mobile has agreed to buy 700 MHz A-block spectrum from Verizon Wireless for $2.365 billion. The sale will also see T-Mobile transfer certain AWS and PCS spectrum licenses with a value of around $950 million to Verizon, bringing the price for the deal to more than $3 billion.

Licenses for the spectrum were last purchased by Verizon for $2.4 billion, but the airwaves sat unused. Verizon CFO Frank Shammo indicated the carrier was willing to sell the license to the spectrum for a reasonable price, with both AT&T and T-Mobile reportedly looking into bids.

The spectrum was last purchased by Verizon for $2.4 billion but left unused

T-Mobile's successful bid for the spectrum delivers on its plans to increase its coverage after raising $4 billion by selling stock and debt . The company will use the new low-band airwaves to support its aggressive rollout of LTE services across the US. Although it's reportedly vulnerable to interference from TV operators, the spectrum offers better building penetration and rural coverage than many other bands.