The deal marks Softbank’s recent investment into Sprint, as the Japanese company plunges capital into the US’s fourth-largest wireless carrier in attempts to counter AT&T and Verizon’s dominance.
Sprint will have access to customers and spectrum in parts of Chicago, St Louis, Illinois, Indiana, Michigan, Missouri and Ohio.
The company is presently undergoing a network upgrade programme, which is intended to roll out 4G LTE services across the US, and it is reportedly already tapping up the $8 billion in capital it has from Softbank.
“This transaction will enable us to strengthen our business and become a more robust competitor,” said Sprint CEO Dan Hesse.
“Acquiring this spectrum will significantly increase Sprint’s network capacity and improve the customer experience in several important Midwest markets including Chicago and St. Louis.
Rival AT&T yesterday announced plans to spend $14 billion in network investment over the next three years and Deutsche Telkom-owned T-Mobile USA launched a takeover bid for MetroPCS, as consolidation and spectrum investment hots up in the US market.
