Verizon Wireless said that the spectrum it gained in the FCC’s 700 MHz auction will allow the company to capture the full potential of its announced plan to deploy a Long Term Evolution (LTE) network and Open Development Initiative. The company revealed its plans in a conference call with the investors.

Verizon Wireless was the winning bidder for a nationwide spectrum footprint (excluding Alaska) in the FCC-termed C-Block group of licenses, plus 102 licenses for individual markets around the country.

In all, the company will pay $9.36 billion for these licenses, which equates to $1.03 per MHz Pop, compared with the auction average of $1.20.

The FCC announced the end of the auction on March 20, but the company was limited in commenting until the Commission’s anti-collusion quiet period rules ended late in the day on April 3.

The new spectrum, which will not be completely cleared for use until mid-February 2009, will increase the company’s average spectrum depth per market to 82 MHz, from 52 MHz today.

Verizon Wireless plans to launch its LTE network in the 700 MHz spectrum in the 2010 timeframe. The company said the breadth of the national C-block spectrum footprint, all in a single band and with a depth of 22 MHz, provides a speed and performance advantage that will be ideal for connecting a variety of consumer electronics, from wireless phones to medical devices to gaming consoles.

“The spectrum we purchased in this auction, combined with our existing portfolio, provides new flexibility as we execute our high-growth business model,” said Lowell McAdam, the company’s president and CEO.

“We now have sufficient spectrum to continue growing our business and data revenues well into – and possibly through – the next decade, and this is the very best spectrum with excellent propagation and in-building characteristics,” he added.

AT&T completed successful bids for prime B Block spectrum in the FCC auction and combined with the Aloha Partners transaction, which closed earlier this year, AT&T has supplemented its holding of high-quality spectrum and continues to have a leading spectrum position in the industry.

The complementary nature of the spectrum AT&T acquired through the FCC auction and from Aloha Partners gives AT&T the capacity to meet customer needs as the company moves to higher-speed 4G (fourth-generation) services. Upon final award of the auctioned B Block spectrum, AT&T's 700 MHz spectrum will cover 100 percent of the top 200 markets and 87 percent of the U.S. population, enabling the company to better compete in a vibrant and dynamic marketplace.

"Results of the auction bidding demonstrate the B Block was the most attractive, most valuable spectrum available, and it was the best investment for AT&T and our customers," said Ralph de la Vega, president and CEO of AT&T's wireless unit.

In the future, AT&T's 700 MHz spectrum holdings will provide the foundation for deployment of next-generation wireless broadband platforms such as HSPA+ and LTE. While standards for emerging technologies such as LTE are still being developed, these technologies could enable peak broadband speeds of 100 Mbps or more.

AT&T currently plans to deliver AT&T 3G services to nearly 350 leading U.S. markets by the end of 2008, including all of the top 100 cities.