Apr 4, 2008

With the Federal Communications Commission's (FCC) anti-collusion quiet period over, Verizon held a conference call this morning to tell investors about its plans for the spectrum licenses it purchased during the 700 MHz auction. The company spent $9.36 billion in Auction 73, including $4.74 billion for the coveted C-Block spectrum.

On the call today, Verizon chairman and CEO Ivan Seidenberg described the auction as "a transformative opportunity" for the company, and Verizon Wireless CEO Lowell McAdam outlined ambitious plans to connect everything and anything -- not just people to other people, but also devices to other devices.

According to McAdam, Verizon felt it had a "once in a lifetime opportunity" with the 700 MHz spectrum because it offered a unique set of benefits, including the best overall coverage results and the best penetration of buildings. In particular, it saw the C-Block as a chance to "supercharge" its growth through procurement of nationwide clear spectrum. McAdam also said the company saw the C-Block as critical because they believe it's the first place developers will go in the future.

All in all, Verizon increased its spectrum by about 60 percent as a result of the auction. Going forward, the company will begin network deployment in the second half of 2009 with plans to launch the network commercially in 2010. McAdam also spoke about the company's open development initiative to allow any device and any application to operate on its wireless network and its selection of LTE as the technology standard for 4G networks.

Separately, competitior AT&T explained its decision to spend $6.64 billion on B-Block licenses in the 700 MHz spectrum auction. Ralph de la Vega, president and CEO of AT&T's wireless business said in a statement, "Our winning bids for B-Block spectrum, combined with the C-Block spectrum we acquired from Aloha Partners, significantly enhances AT&T's spectrum portfolio...with fewer costly and complex regulations, we have the certainty and flexibility needed to move faster in rolling out new mobile technology and more customer choices in devices and applications."

Tags: 700 MHz, ATT, broadband, FCC, spectrum auction, Verizon, wireless