AT&T agreed to pay $2.5 billion for lower-band 700 MHz spectrum a...

196 million people in 281 markets, including the top 10 U.S. markets and 72 of the nation’s 100 largest markets. Aloha, parent of mobile TV company HiWire, had planned to use its 700 MHz holdings for a nationwide mobile TV service or for wireless broadband. HiWire has had a trial of the mobile TV service running in Las Vegas in cooperation with T-Mobile. Aloha bought most of the spectrum in FCC auctions in 2001 and 2003. Aloha founder Charlie Townsend, a telecom industry veteran, earlier built up Atlantic Cellular Company, selling it in 1998 to Rural Cellular Corp. AT&T, the nation’s largest wireless carrier, has been beefing up its wireless portfolio, agreeing in June to pay $2.8 billion for small carrier Dobson. “Customer demand for mobile services, including voice, data and video, is continually increasing,” said Forrest Miller, group president-corporate strategy and development at AT&T: “Aloha’s spectrum will enable AT&T to efficiently meet this growing demand and help our customers stay connected to their worlds.” The buy’s net impact remains to be seen, Stifel Nicolaus said. “If AT&T’s strategy is to deepen its holdings in the lower band, today’s announcement is potentially bad news for rural carriers, regional carriers, or Qualcomm,” the firm said in a research note. “If AT&T is content with the 12 MHz of spectrum or retains its sights on the upper band, today’s announcement is good news for the regional and rural carriers, and Qualcomm, which have lost Aloha as a competitive bidder.” The announcement also reduces the incentive for AT&T to bid for the 10 MHz D block in the coming 700 MHz auction, the firm said.