Even the losers win in this auction: The gag order from the FCC over the bidding and results of the 700 MHz spectrum auction were lifted yesterday, and everyone is jabbering. Verizon and AT&T have announced they'll build LTE (Long Term Evolution) cell data networks, a GSM standard, in the 700 MHz band. AT&T says their network will come online starting in 2012; Verizon, 2010.
Google posted on their own blog and told the New York Times that they were happy enough losing, even though they bid to win...sort of. They raised their own bids a few times to keep interest from other players, but were relieved when another bidder topped them. That turned out to be Verizon Wireless. Google managed to get a few types of openness encoded into the band, and they think (rightly so) that it made a difference. An economist notes in the Times article that Google now only has to spend "$1 million a year on a law firm to ensure Verizon lives up to the openness requirements."
AT&T didn't bid on the C Block that Google was discussing, a set of licenses that provide national coverage in a few easy pieces. Rather, they focused on acquiring 700 MHz spectrum before the auction from Aloha Partners (from the previous 700 MHz auction), and spending billions on smaller licenses all over the country that they can pin together. Those licenses are unencumbered by open device, application, and service provisions, so AT&T thinks they got the better deal. A good summary is at Phone Mag.
Verizon for its part said it was pleased with its national-scope licenses. Despite AT&T acquiring lots of spectrum, it's going to be far easier for Verizon to use these nationally defined bands, with consistent performance across all their networks.





