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AT&T Nets FCC Approval to buy Major 700 MHz Spectrum Chunk from Aloha Partners
AT&T receives its expected approval to purchase a 12 MHz block of 700 MHz spectrum secured in a previous auction by Aloha Partners.
AT&T has won final FCC approval of its purchase from Aloha Partners of a 12 MHz block of 700 MHz spectrum that Aloha had purchased in a previous auction. The spectrum which covers 72 of the top 100 markets out of a total of 281 is estimated to cover 196 million potential customers.
The selling price of $2.5 billion translates into a nearly $1 per MHz POP price. It should come as no surprise then that the ongoing 700 MHz auction being conducted now is setting new records for prices bid. The sale included Aloha's entire licensed spectrum inventory. However, AT&T must reimburse the FCC for discounts Aloha received when purchasing the licenses as a small business. Discount savings was 35 percent.
As an interesting side note, this deal also includes Aloha's 32 broadcast spectrum licenses that it acquired for $32.5 million in September, 2006 from Providence-based LIN TV. These licenses cover 17 markets.
By most measures, it is clear that US carriers really value the 700 MHz spectrum currently being auctioned. The propagation characteristics of the frequencies are outstanding. However, there are tradeoffs in terms of effective bandwidth. Still, what carriers do with this spectrum range will be very telling for the US broadband wireless marketplace.
Tim Sanders,
www.TheFinalMile.net
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AT&T Picks up 700 MHz Spectrum
In India also the 700 Mhz band is vaccant and some noises have been made to allot it to Mobile TV, but WiMAX is equally good at delivering streaming IPTV. This needs serious consideration by the governemnt.
Amitabh Kumar wimaxbook.net