Verizon to Use New Spectrum for Advanced Wireless

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

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

"We now have sufficient spectrum to continue growing our businessand 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 airwavesoffered in the Federal Communications Commission auction, paying $4.74billion for the portion of spectrum known as the "C" block.

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

The 700-megahertz airwaves are considered valuable because theytravel long distances and can penetrate thick walls. They are beingreturned by television broadcasters as they move to digital from analogsignals in early 2009.

The comments came shortly after the deadline expired foranti-collusion restrictions that were in effect during the auction andbarred carriers from discussing the auction results.

(Reporting by Peter Kaplan; editing by Derek Caney)