Description

Freedom isn’t free. Just ask the bidders in the U.S. 700 MHz
spectrum auction. The band is widely considered the last of the
beach-front property, partly because of its favorable propagation
characteristics: Signals travel farther at 700 MHz than at higher
frequencies such as 1900 MHz, so operators need fewer base
stations to cover an area. That translates into lower overhead
costs — a major asset for any operator, but particularly for
newcomers who want to be price competitive with incumbents.

Such optimism is reflected in the bidding. At press time, the auction
had garnered more than $19 billion in bids, significantly more than
the $10 billion to $15 billion the FCC had originally projected.