By Peter Kaplan 1 hour, 41 minutes ago
WASHINGTON (Reuters) -
Verizon Communications Inc (VZ.N)
said on Friday it would use the airwaves it acquired in a
government auction last month for its next generation of
high-speed wireless services, expected to debut around 2010.
In a telephone conference with analysts the company said
the $9.36 billion worth of new 700 megahertz spectrum would
give Verizon Wireless, the No. 2 U.S. mobile service, enough
resources to build a faster wireless data network.
McAdam said the spectrum would be used for a network
Verizon Wireless plans to build based on an emerging technology
known as Long Term Evolution, which it expects to boost revenue
by connecting "everything and anything together."
Verizon Wireless, a venture of Verizon and Vodafone Group
Plc (VOD.L), will use the airwaves to connect a broad array of
devices, such as digital media players, gaming consoles and
even home appliances, McAdam said.
Verizon Wireless and AT&T (T.N) 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 700 megahertz 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 time frame."
The 700-megahertz airwaves are considered valuable because
they travel long distances and can penetrate thick walls. They
are being returned by television broadcasters as they move to
digital from analog signals in early 2009.
As part of the rules for the 700-megahertz auction, the FCC
required the winner of the C block spectrum to make it an "open
platform" accessible to customers using any device or software
application.
As a result Verizon has promised to support devices and
software applications that it does not offer directly itself.
They echoed a statement issued on Thursday night by AT&T,
which said its added 700-megahertz auction would be used to
move into the next generation of wireless broadband services.
AT&T executives estimated the roll-out of more advanced
network at about 2012. However, unlike the airwaves acquired by
Verizon, AT&T noted that its new spectrum was not burdened with
many regulatory requirements imposed on a nationwide block of
spectrum that Verizon won in the auction.
The comments by Verizon came a day after the deadline
expired for anti-collusion restrictions that were in effect
during the auction and barred carriers from discussing the
auction results.
(Reporting by Peter Kaplan; editing by Derek Caney)
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