Verizon Wireless (NYSE:VZ) is thinking aboutunloading some of its spectrum assets in an auction, which could bring in billions of dollars. But money isn’t the real reason.
Instead, this looks like a move to win approval to buy spectrum from cable operators such as Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC). Keep in mind that other wireless carriers, such as Sprint (NYSE:S), T-Mobile USA and MetroPCS (NYSE:PCS) have been trying to block the auction.
It�s convoluted stuff, but it shows that spectrum is a critical asset, especially as smartphones grab a bigger chunk of the market. The problem is that there’s not much to go around. So Verizon�s willingness to sell some of its spectrum holdings could ease the pressure.
In the meantime, the company continues to grow at a nice pace. Verizon reported its earnings today, beating Wall Street expectations. And yes, a big driver was smartphone sales.
In the first quarter, earnings rose from 51 cents a share to 59 cents a share, with sales up 4.6%, to $28.2 billion.
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