Top bidders put up a total of more than $2.4 billion in the opening round of the Federal Communications Commission's
auction of coveted U.S. government-owned airwaves.
WASHINGTON (Reuters) - Top bidders put up a total of more than $2.4 billion
on Thursday in the opening round of the Federal Communications Commission's
auction of coveted U.S. government-owned airwaves.
The figure represents the highest bids received for five separate blocks of
spectrum at the beginning of the auction, which is eventually expected to net
the federal government at least $10 billion.
Companies qualified to bid include major carriers AT&T Inc and Verizon Wireless, as
well as possible new competitors like Internet company Google Inc, EchoStar
Communications Corp and Cablevision
Systems Corp.
Identities of bidders will be kept secret until the entire auction ends under
FCC rules.
Analysts say the major carriers could use the new spectrum to offer consumers
more advanced services such as broadband access via mobile phones and wireless
broadband to laptop computers.
Verizon Wireless is a joint venture of Verizon Communications Inc and Vodafone Group Plc.
The $2.4 billion worth of opening high bids included a $472 million offer for
a closely watched block of spectrum, known as the "D" block, which will have to
be shared with public safety agencies under FCC rules.
It also included an opening high bid of $1.04 billion for the sought-after
"C" block, which carries another condition requiring that it be open to all
devices and software applications.
The FCC issued results of the first round of bidding for the government-owned
spectrum shortly after the round ended at noon.
The FCC has set minimum prices of $1.3 billion and $4.7 billion for the D and
C blocks respectively. These blocks could be used to create a national
network.
Other spectrum includes 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 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.
The electronic auction is expected to continue for weeks or even months and
will end when no more bids are submitted. The FCC plans to hold multiple rounds
of back-and-forth bidding each day on each of five blocks of spectrum available
for sale.
A second round on Thursday is scheduled to go from 2:30 p.m. to
4:30 p.m.
Results from each round are made publicly available on the FCC's Web site
about 10 minutes afterward.
Starting on Friday, the FCC is scheduled to hold three rounds of bidding each
day until further notice. Bidding typically accelerates as the auction
progresses.
(Editing by Tim Dobbyn)
Copyright
Reuters 2007. 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.