FCC Set to Approve AT&T Buy of 700 MHz Spectrum
FCC Chairman Kevin Martin circulated an order on the eve of the 700 MHz auction approving AT&T’s purchase of lower band 700 MHz spectrum from Aloha Partners for $2.5 billion. Martin asked other offices to vote Wednesday evening so approvals are done before the auction starts. AT&T is expected to be a key player in the 700 MHz auction. The company did not request expedited commission action, an AT&T spokesman said.
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Wireless Bureau Chief Fred Campbell indicated he would issue a public notice approving the purchase, especially since a public comment period drew no opposition. Then at least one Democratic office asked for a full vote. The order gave the deal a clean bill of health, diagnosing no competitive harm, even in 11 cellular market areas (CMAs) where AT&T spectrum holdings now exceed the new 95 MHz spectrum soft cap set in last year’s AT&T-Dobson merger order, sources said.
The acquisition brings AT&T 12 MHz of spectrum covering 196 million people in 281 markets, including the top 10 U.S. markets and 72 of the nation’s 100 largest markets (CD Oct 10 p15). Aloha, parent of mobile TV company HiWire, previously indicated it would use its 700 MHz holdings for a nationwide mobile TV service or for wireless broadband.
Aloha bought most of the spectrum in FCC auctions in 2001 and 2003. AT&T’s buy could have an indirect effect on the 700 MHz auction, making AT&T less likely to bid for the 10 MHz D-block national license, said Stifel Nicolaus.