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FCC 700 MHz Auction Begins Today

Jan 24, 2008, 11:26 AM by Eric M. Zeman

Today marks the start of Auction 73, which is for five blocks of spectrum in the 700MHz band. The blocks, named A through E, all have different characteristics, each with its own reserve price, ranging from $904 million to $4.6 billion. If the reserve prices of any of the blocks aren't met, the FCC will re-auction them and possibly remove any conditions applying to the block. The largest of them, Block C, contains two 11MHz pairs for a total of 22MHz. Block C is also made up of fewer regions, so it is a highly sought after block because it will help the winner create a bigger network. The entire bidding process is completely secret. Bids will be taken every business day in three rounds. The highest bid will be revealed at the end of each round, but not the identity of the highest bidder. The auction will not end until no more bids are made. Only then will the winners be revealed. The process could take over a month to complete. This spectrum is important because it is among the last that can be used for consumer services.

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