Printed from http://www.electronista.com

AT&T's 700MHz wins require $1.3b up front

updated 11:05 am EDT, Fri March 21, 2008

ATT 700MHz Costs

AT&T's gains for wireless space in the FCC 700MHz auction will cost it enough to require a major downpayment, according to a filing by the cellular carrier. The company explains that its new space will demand a $1.3 billion down payment within the next ten days and that it will need to take on a debt load of $5.3 billion to pay for the remaining amount. The figures make up a significant portion of the overall auction, which resulted in a reportedly record-setting $18.9 billion in net bids spread across a mix of large telecoms companies as well as regional businesses.

Most of AT&T's successful bids were in the "B" block of the 700MHz spectrum and covered regional licenses rather than the national license obtained by Verizon for the competitive "C" block. AT&T has responded to its results by declaring itself pleased with the auction, which still gives it 95 percent coverage of the US population.

Both AT&T and Verizon are believed to be obtaining the rights to use the frequency spectrum for the sake of future 4G Internet networks, which would use the relatively low frequency to offer faster speeds at longer ranges and with better signal quality indoors. Unlike Verizon, AT&T is not subject to the open access conditions for the "C" block and can optionally lock out competing devices or software on a future service.

AT&T has typically sold devices locked to its network and restricted software, but also allows unlocked GSM devices to run on its network and is believed to have relinquished most control over what users can install to the iPhone.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    why?

    Why did AT&T bother buying this spectrum? From all that I understand, they should be able to sit back, relax, and watch all the other cell carriers collapse and fail within the next year (since no one wants any phone but an iPhone). Then they could just pick up the airwaves cheap.

  1. MeandmyMac

    Fresh-Faced Recruit

    Joined: Feb 2008

    0

    That collapse...

    won't happen until Apple releases their iPhone with 4G Internet capabilities with autostereoscopic 3-D display hardware! - 'grins'

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Dell AD211 Bluetooth speaker

For all of the high-priced, over-engineered Bluetooth speakers in the electronics market, there is still room for mass-market solution ...

VisionTek 128GB USB Pocket SSD

USB flash drives dealt the death blow to both the floppy and Zip drives. While still faster than either of the old removable media, sp ...

Kodak PixPro SL10 Smart Lens Camera

Smartphone imagery still widely varies. Large Megapixel counts don't make for a good image, and the optics in some devices are lacking ...

Sponsor

toggle

Most Commented

 
toggle

Popular News