AT&T and MetroPCS both announced plans to make down payments to the FCC for the portions of spectrum they won in the recent 700 MHz auction.
AT&T said it will make an initial down payment of $1.3 billion, with plans to make another payment within the next 10 business days, and will pay the remaining balance on or before April 17. The carrier said it will use funds from operations and either short- or long-term debt to make the payments.
MetroPCS Communications also announced that it will pay $313 million for the spectrum license it won in the auction. The Richardson, Texas,-based carrier placed the winning bid for 700 MHz spectrum in the Boston-Worcester, Mass./New Hampshire/Rhode Island/Vermont areas.
MetroPCS will need to make a final payment of $160 million to the FCC by April 17. The carrier said it expects to use funds provided by its existing unrestricted cash and cash equivalents and its anticipated cash flows from operations to pay for the license.