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Feb. 6, 2008

According to various reports, AT&T appears to have already won quite a few of the available 700 MHz licenses at the annual FCC bidding auction.

The commission has approved AT&T's buyout of Aloha Partners, including its coveted spectrum holdings, which are estimated to cover 196 million people in all of 281 markets.

AT&T offered to buy Aloha for $2.5 billion in cash in Dec. of 2007.

Overall, Aloha owned 12 MHz within the 700 MHz band, acquired in a previous spectrum auction. It had two limited market trials but never used the licenses to build out a wireless network.

Aloha acquired the licenses at a deep discount, and as part of the FCC's approval, AT&T will have to make up for the discounted price, including interest, before it can complete the deal in any way.

However, the FCC's final approval declared that AT&T's acquisition would not "have an adverse effect on competition."

FCC Commissioner Michael Copps reportedly objected to the sale saying the commission's approval was "a rush to judgment," and that the transfer most likely will "reduce competition and diversity" within the wireless services market.

The 700 MHz bidding auction resumes today.

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Source: The FCC.

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