Verizon, AT&T Are Big Winners in FCC Auction

Posted on : 21-03-2008 | By : admin | In : Technology


The Federal Communications Commission auction for the 700-MHz wireless spectrum is over, and the winners are known. One obvious winner is the FCC itself, which exceeded its initial estimate of $10 billion with a $19.59 billion total.

Among the bidders, Verizon Wireless and AT&T won big portions of the available spectrum, which is being vacated as U.S. television stations move to digital transmission.

Google a Big Winner, Too

Verizon took 108 licenses for $9.6 billion, and AT&T bagged 227 for $6.6 billion. Observers say Verizon’s purchases will help it narrow a gap in coverage as it competes with AT&T.

One potentially big winner is Google, even though it didn’t win any bids. It bid $4.7 billion for the C-block frequencies, which triggered an auction requirement that any third-party compatible device or software must be able to operate on the bandwidth. That was one of the open-network provisions that Google, as head of an alliance of consumer organizations and businesses, was able to have adopted by the FCC.

Verizon, which backed an open-network position shortly before the auction, bought the C-block license.

Dish Network took 168 wireless licenses for $711 million, although it was not immediately apparent what it intends to do with them. Some observers are speculating it might be for a video service of some kind, but the company is prohibited from discussing its plans until it makes the down payment on April 3.

One setback for the FCC was the auction of the upper 700-MHz D block. Earlier this week, the agency separated that block from the rest of the auction and said it will “consider its options for how to license this spectrum,” since bids did not meet the $1.3 billion minimum. The D block was established to create a public-private partnership that would guarantee public-safety agencies bandwidth access in emergencies.

Impact on Consumers

The…

Tags: business, Communications, consumers, Google, Software, Wireless

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