Verizon Wireless said that the spectrum it gained in the FCC’s
700 MHz auction will allow the company to capture the full potential of its
announced plan to deploy a Long Term Evolution (LTE) network and Open
Development Initiative. The company revealed its plans in a conference call
with the investors.
Verizon Wireless was the winning bidder for a nationwide
spectrum footprint (excluding Alaska)
in the FCC-termed C-Block group of licenses, plus 102 licenses for individual
markets around the country.
In all, the company will pay $9.36 billion for these
licenses, which equates to $1.03 per MHz Pop, compared with the auction average
of $1.20.
The FCC announced the end of the auction on March 20, but
the company was limited in commenting until the Commission’s anti-collusion
quiet period rules ended late in the day on April 3.
The new spectrum, which will not be completely cleared for
use until mid-February 2009, will increase the company’s average spectrum depth
per market to 82 MHz, from 52 MHz today.
Verizon Wireless plans to launch its LTE network in the 700
MHz spectrum in the 2010 timeframe. The company said the breadth of the
national C-block spectrum footprint, all in a single band and with a depth of
22 MHz, provides a speed and performance advantage that will be ideal for
connecting a variety of consumer electronics, from wireless phones to medical
devices to gaming consoles.
“The spectrum we purchased in this auction, combined with
our existing portfolio, provides new flexibility as we execute our high-growth
business model,” said Lowell McAdam, the company’s president and CEO.
“We now have sufficient spectrum to continue growing our
business and data revenues well into – and possibly through – the next decade,
and this is the very best spectrum with excellent propagation and in-building
characteristics,” he added.
AT&T completed successful bids for prime B Block
spectrum in the FCC auction and combined with the Aloha Partners transaction,
which closed earlier this year, AT&T has supplemented its holding of
high-quality spectrum and continues to have a leading spectrum position in the
industry.
The complementary nature of the spectrum AT&T acquired
through the FCC auction and from Aloha Partners gives AT&T the capacity to
meet customer needs as the company moves to higher-speed 4G (fourth-generation)
services. Upon final award of the auctioned B Block spectrum, AT&T's 700
MHz spectrum will cover 100 percent of the top 200 markets and 87 percent of
the U.S.
population, enabling the company to better compete in a vibrant and dynamic
marketplace.
"Results of the auction bidding demonstrate the B Block
was the most attractive, most valuable spectrum available, and it was the best
investment for AT&T and our customers," said Ralph de la Vega,
president and CEO of AT&T's wireless unit.
In the future, AT&T's 700 MHz spectrum holdings will
provide the foundation for deployment of next-generation wireless broadband
platforms such as HSPA+ and LTE. While standards for emerging technologies such
as LTE are still being developed, these technologies could enable peak
broadband speeds of 100 Mbps or more.
AT&T currently plans to deliver AT&T 3G services to
nearly 350 leading U.S.
markets by the end of 2008, including all of the top 100 cities.
