One day and two rounds into the long-awaited spectrum auction by the Federal Communications Commission, the highest bids total $2.78 billion, according to news reports. The auctioned frequencies could result in a new era for broadband wireless, unlocked handsets, and nationwide emergency communications.

Five blocks of frequencies in the 700-MHz band went on auction Thursday, with 214 approved bidders ranging from telecommunications companies like Verizon Wireless and AT&T to newcomers like Google and Chevron USA to small, local companies. Observers have speculated that the auction could bring in $10 billion to $30 billion, but the top bidders are not yet known because the bids are secret until the end of the auction.

The C and D Blocks

Two blocks in particular have attracted a lot of attention in recent months, the C and D blocks.

After months of lobbying for open-access rules by an alliance led by Google, the FCC had announced that the C block winner must allow the use of any compatible device or non-malicious software, assuming the minimum price was met.

Although other open-access requests were not adopted, including a requirement that the winner make the bandwidth available on a wholesale basis to third-party resellers, the initially reluctant AT&T and Verizon Wireless now have declared their support for open networks.

After the first day of bidding, the C block’s high bid was $1.24 billion. The open-devices provision requires that a minimum price of $4.7 billion be met.

The D block would require that the winner allow public-safety agencies to use it in case of emergencies. The leading contender for that spectrum chunk had been Frontline Wireless, a startup which included former FCC chairman Reed Hundt, but that company recently announced it was ceasing operations because it was unable to complete its financing. The D block received a high bid of $472 million…