Bidding reached $18.55 billion in
the U.S. Federal Communications Commission's record-setting auction of
government-owned wireless airwaves, but there were no new offers for
two large, closely watched slices of spectrum.
WASHINGTON (Reuters) - Bidding reached $18.55 billion on Friday in
the U.S. Federal Communications Commission's record-setting auction of
government-owned wireless airwaves, but there were no new offers for
two large, closely watched slices of spectrum.
The total bidding, which covers five separate blocks of spectrum in the auction, was up from $15.64 billion on Thursday.
There were no new bids on a major slice of the airwaves, known as
the "C" block, which will have to be made accessible using any device
or software application, under FCC rules. A bid of $4.71 billion, made
on Thursday morning remained the top offer.
Nor were there any new bids Friday on a nationwide piece of the
spectrum, known as the "D" block, which must be shared with public
safety agencies under auction rules set by the agency. A bid of $472
million from last week still stood.
The lone $472 million bid for the D block spectrum, which came in
the first round of the auction a week ago, is far below the $1.3
billion minimum price set by the FCC. If bidding fails to reach the
minimum, the FCC will have to decide whether to re-auction the D block
or possibly modify the network-sharing requirement.
The open-access condition on the C-block spectrum is important
because U.S. wireless carriers have traditionally restricted the models
of cell phones that can be used on their networks and limited the
software that can be downloaded onto them, such as ring tones, music or
Web browser software.
But AT&T and Verizon began moving away from that restrictive stance in recent months.
The FCC is keeping bidders' identities secret until the entire
auction ends. But analysts say Verizon Wireless and Internet search
leader Google are the most likely bidders for the C block.
The 700-megahertz signals are valuable because they can go long
distances and penetrate thick walls. The airwaves are being returned by
television broadcasters as they move to digital from analog signals in
early 2009.
In addition to the C and D blocks, the other spectrum includes more
local chunks set aside in blocks designated "A" and "B". The final, "E"
block, is considered less useful because it is limited to one-way data
transmission.
The electronic auction will end when no more bids are submitted.
(Reporting by Peter Kaplan, editing by Leslie Gevirtz)
Copyright
Reuters 2008. All rights reserved. Users may download and print extracts of
content from this website for their own personal and non-commercial use only.
Republication or redistribution of Reuters content, including by framing or
similar means, is expressly prohibited without the prior written consent of
Reuters. Reuters and the Reuters sphere logo are registered trademarks or
trademarks of the Reuters group of companies around the world.