FCC to Announce Rules for Wireless Spectrum Auction

The Federal Communications Commission is expected to set the rules for a significant sale of radio spectrum Tuesday. Most of the 62 megahertz of spectrum, which could generate as much as $15 billion in revenue for the FCC, comes from TV broadcasters making the switch to digital signals from analog. A tentative proposal from the FCC calls for splitting the upper and lower bands, with the upper 32 MHz expected to be broken in three segments, two of which will be sold to a single bidder in effect allowing for a possible national footprint. This spectrum is sought by AT&T and Verizon for enhancing the coverage and speed of their networks. The proposal for the lower 30 MHz has it being broken into smaller segments to be spread across the nation, appealing to small, regional wireless carriers (such as MetroPCS and Alltel) looking to expand. Google recently said it would bid a minimum of $4.6b, as it seeks "wholesale open access" license conditions, meaning there will be no restrictions on the types of devices or applications that can use the spectrum.

Sources: Bloomberg, Wall Street Journal
Commentary: Google Dangles $4.6 Billion Bid For FCC Wireless Platform • Sprint And Clearwire To Build National WiMax Network • Sprint Nextel/Clearwire Deal Should Fire Up Alvarion, Airspan
Stocks/ETFs to watch: GOOG, AT, PCS, EBAY, T, VZ. ETFs: WMH

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