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Someone just bought the C Block of the 700 MHz spectrum for $4.7 billion

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Someone just bought the C Block of the 700 MHz spectrum for $4.7 billion

Old 01-31-08, 03:13 PM
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Someone just bought the C Block of the 700 MHz spectrum for $4.7 billion

but who is it?

Google? Verizon?

Spectrum Auction: The C-Block Bidding Is Over at $4.7 Billion

We have a winner. But we donít know who it is.

In the second round of bidding in the governmentís spectrum auction today, there were no new bids for the C block of frequencies, the most attractive license that will allow someone to start or add to a national wireless voice and data network. The high bid from this morning stands at $4,713,823,000. Since the rules would require anyone else who wanted to buy those frequencies to bid in this round, it appears that there is no one else trying to compete.

We wonít know who the high bidder is until the auction is completed for all the other smaller licenses, which could take weeks. Since no more than one bid was received in each round, there may have been one company bidding all along. Or two companies may have been leapfrogging each other, at least for a while. Google has said it would bid for these frequencies, but companies are banned from talking about their bidding while the auction is active.

One thing is certain: because the C Block hit the $4.6 billion reserve price set by the Federal Communications Commission, certain rules will apply that will require the winning company to open its network to devices from competing companies.

The winning bids total $13.7 billion for the auction so far. Of that, however, $472 million is bid for the D block, which was meant to be a combination of a private wireless network and a communication system for public safety agencies. There was one bid in the first round and no further bids. As the bidding is far less than the $1.6 billion reserve price, experts expect that the F.C.C. will change the rules for that block and set a new auction.
http://bits.blogs.nytimes.com/2008/0...ref=technology
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Old 01-31-08, 07:09 PM
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Interesting. There seemed to be a lot of interest from companies with large pocket books. I'm curious if they felt that the price, rules, or both were too restrictive to go through with a bid.

It certainly is a heck of a lot of money. If you think about it, that amount equates to roughtly 1/3 of Apple's reserves! You'd either have to be really confident in your plans, or have some private backers with cash.
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Old 01-31-08, 07:30 PM
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what is really interesting is how Apple changed things. for a while now wireless carriers struck all kinds of media deals so they wouldn't just be a dumb network. with the IPhone ATT went back to being a dumb network and they are making more money now since IPhone users run up huge data bills.

i predict a lot of marketing people will be switching jobs soon
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Old 01-31-08, 08:27 PM
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Why buy the frequencies if you have to open them to the competitors? I mean if you let somebody else front money, and they must let you use it, what is the point?
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Old 01-31-08, 10:38 PM
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Originally Posted by jonw9
Why buy the frequencies if you have to open them to the competitors? I mean if you let somebody else front money, and they must let you use it, what is the point?
Same reason you buy an apt building and lease out the units. They don't have to give away access, they just have to make it available.
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Old 01-31-08, 10:59 PM
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