Verizon Drops Details on New Spectrum Plans
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Verizon Communications said on Friday it would use the airwaves it acquired in a government auction last month to help launch more advanced wireless broadband services, which it said would debut around 2010.
In a telephone conference with analysts and investors, the chief executives of Verizon (NYSE: VZ) and Verizon Wireless said the $9.36 billion worth of new 700MHz spectrum would allow Verizon Wireless to take full advantage of its plans for a new, faster wireless network.
"We now have sufficient spectrum to continue growing our business and data revenues well into -- and possibly through -- the next decade," Verizon Wireless CEO Lowell McAdam said.
Verizon Wireless and AT&T (T.N: Quote, Profile, Research) won the lion's share of the spectrum up for grabs in the $19.12 billion auction, with AT&T spending another $6.64 billion.
Verizon Wireless won the largest single block of nationwide airwaves offered in the Federal Communications Commission auction, paying $4.74 billion for the portion of spectrum known as the "C" block.
Commenting on the 700MHz spectrum for the first time since the landmark auction ended on March 18, Verizon said it expected to launch its next generation wireless network "in the 2010 timeframe."
The 700MHz airwaves are considered valuable because they travel long distances and can penetrate thick walls. Television broadcasters are returning them as they move to digital from analog signals in early 2009.
The comments came shortly after the deadline expired for anti-collusion restrictions that were in effect during the auction and barred carriers from discussing the auction results.