Verizon to Use New Spectrum for Advanced Wireless

By Reuters -  |  Posted 2008-04-04 Print this article Print

Executives said the new 700 megahertz spectrum would allow Verizon Wireless to take full advantage of its plans for a new, faster wireless network.

WASHINGTON (Reuters) - Verizon Communications Inc (VZ.N: Quote, Profile, Research) said on Friday it would use the airwaves it acquired in a government auction last month to help launch more advanced wireless broadband services, which it said would debut around 2010.

In a telephone conference with analysts and investors, the chief executives of Verizon and Verizon Wireless said the $9.36 billion worth of new 700 megahertz spectrum would allow Verizon Wireless to take full advantage of its plans for a new, faster wireless network.

"We now have sufficient spectrum to continue growing our business and data revenues well into -- and possibly through -- the next decade ...," said Verizon Wireless CEO Lowell McAdam.

Verizon Wireless is a joint venture of Verizon Communications and Vodafone Group Plc (VOD.L: Quote, Profile, Research).

Verizon Wireless and AT&T (T.N: Quote, Profile, Research) won the lion's share of the spectrum up for grabs in the $19.12 billion auction, with AT&T spending another $6.64 billion.

Verizon Wireless won the largest single block of nationwide airwaves offered in the Federal Communications Commission auction, paying $4.74 billion for the portion of spectrum known as the "C" block.

Commenting on the 700 megahertz spectrum for the first time since the landmark auction ended on March 18, Verizon said it expected to launch its next generation wireless network "in the 2010 time frame."

The 700-megahertz airwaves are considered valuable because they travel long distances and can penetrate thick walls. They are being returned by television broadcasters as they move to digital from analog signals in early 2009.

The comments came shortly after the deadline expired for anti-collusion restrictions that were in effect during the auction and barred carriers from discussing the auction results.

(Reporting by Peter Kaplan; editing by Derek Caney)


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