Bidder List Finalized For 700 MHz Spectrum Auction

[Adama D. Brown]

The FCC has posted the final list of qualified bidders for the auction of 700 MHz spectrum, which starts on January 24.

The wireless spectrum licenses being auctioned, valued at an estimated total of $15 billion dollars, provide enough new radio space for up to ten new nationwide wireless networks, or four nationwide and dozens or even hundreds of regional providers.

Due to the combination of long range and high bandwidth present in the 700 MHz band, it is considered ideal for applications of high-speed data and Internet service. The most desired property in the auction is the "C" block, a pair of nationwide licenses that are expected to start at a minimum price of $4.6 billion dollars.

Major corporate bidders include Google, Cox, Alltel, Verizon Wireless, Chevron, and AT&T, along with over 200 local telephone companies, startups, wireless Internet providers, and venture groups, stretching from Maine to Guam.

The bidder list totals 214 entities, competing over four nationwide licenses and six thousand regional ones. Each area in the United States and and its territories is covered by ten different licenses, each of which will be independently available. Bidding in the auction will be anonymous to maximize competition.

Actual Networks Not for a Year

Although companies may begin testing and deployment, no networks will actually be operational on the new spectrum at least until April 7, 2009. This is when the analog TV channels that are currently using these frequencies will be shut down and moved to digital spectrum.

Related Articles:

• A Primer On The Coming FCC Auction
• Google Commits to 700 MHz Wireless Spectrum Auction

Via DSLReports

[Hook]

So what is Chevron looking for? Just curious.

[Adama D. Brown]

That's a good question. It may be something as simple as an outlet to soak up some of their $5 billion a month of profits, tax shelter style. They might also see it as an investment, which will become more profitable as there becomes less prime spectrum on the market--though they'd have to offload it fairly quick--no more than two or three years--if they wanted to avoid the requirements the FCC has put up to make companies build out networks on the spectrum, rather than sitting on it.

Of course, it's possible that they're interested in it for some other purpose, and actually want to use the spectrum.

[Konrad Pierce]

Perhaps they could use a wireless network to "sync" all their stations with the latest fuel prices?

More seriously, I think they might be looking into establishing a cellular network of sorts. If each retail location mounted wifi equipment, they'd be able to offer respectable coverage of sorts for truckers, travellers, and city denizens. A Canadian chain called Petro Canada already does something like this; even offering their own branded Nokia phones and service plans. Even ignoring the cellular communication or wireless internet possibilities, dropping a GPS-timing transponder or CB autorepeater on top of each station might still be a useful (profitable) venture. Merging - for example - the Chevron cellnet to the PetroCan one would also be a good idea, especially if Chevron collected some kind of regular payments (lease, subscription, or charge per use) through the arrangement.

[Dick Tracy]

Major oil (and transportation) companies have many reasons to operate their own global networks. Didn't Sprint originate from Southern Pacific Railroad's SP Communications?

[Konrad Pierce]

I have no idea about Sprint. I've heard that WalMart wants to create an intercity transport division, though, to streamline more profits when they move all their junk from box to box. Maybe my facts are wrong, or even outdated. I wonder if they're on the 700MHz list?

[Adama D. Brown]

Major oil (and transportation) companies have many reasons to operate their own global networks. Didn't Sprint originate from Southern Pacific Railroad's SP Communications?

Indeed they did.