AT&T sees strategic success in U.S. wireless auction

By Peter Kaplan

WASHINGTON (Reuters) - AT&T Inc (T.N: Quote, Profile, Research, Stock Buzz) said on Thursday the $6.64 billion worth of additional airwaves it acquired in a government auction last month would allow the company to make a strong move into the next generation of wireless services.

Speaking for the first time about the landmark auction since it ended on March 18, AT&T said it would use its new 700 megahertz spectrum to enhance the quality and reliability of existing wireless broadband and voice services and position the company to roll out more advanced wireless broadband in coming years.

"We will put our spectrum to work so that customers can do more with their wireless devices, the user experience is superb, and wireless connectivity can be embedded in more devices," Ralph de la Vega, chief executive of AT&T's wireless unit, said in a statement.

AT&T won 227 regional licenses around the United States in the auction, run by the Federal Communications Commission.

AT&T said on Thursday that, with the additional airwaves, its 700 MHz spectrum would cover the top 200 U.S. markets and 87 percent of the U.S. population.

The 700 MHz airwaves are considered valuable because they travel long distances and penetrate thick walls. They are being returned by television broadcasters as they move to digital from analog signals in early 2009.

AT&T's comments came shortly after the expiry of anti-collusion restrictions in effect during the auction that barred carriers from discussing the auction results.

AT&T and rival Verizon Wireless won the lion's share of the spectrum up for grabs in the $19.12 billion auction, with Verizon spending $9.63 billion.