Wednesday, April 2, 2008

AT&T Comments on Recent Spectrum Purchase in FCC Auction

AT&T said its successful bids for prime B Block spectrum in the recent FCC auction, combined with its acquisition of Aloha Partners, gives its a leading spectrum position in the United States to further enhance the quality and reliability of existing wireless broadband and voice services while setting the foundation for future 4G services.

With the final award of the auctioned B Block spectrum, AT&T's 700 MHz spectrum will cover 100 percent of the top 200 markets and 87 percent of the U.S. population. The C-Block spectrum AT&T acquired from Aloha Partners is not subject to the same strict regulations imposed on the C Block spectrum that the FCC recently auctioned.

"Results of the auction bidding demonstrate the B Block was the most attractive, most valuable spectrum available, and it was the best investment for AT&T and our customers... With fewer costly and complex regulations, we have the certainty and flexibility needed to move faster in rolling out new mobile technology and more customer choices in devices and applications," said Ralph de la Vega, president and CEO of AT&T's wireless unit.

AT&T currently plans to deliver 3G services to nearly 350 U.S. markets by the end of 2008, including all of the top 100 cities. The 3G initiative will include the rollout of more than 1,500 additional cell sites nationwide. The company also will complete the nation's first HSUPA-enabled network by the middle of the year. This advanced network delivers typical downlink speeds ranging between 600 and 1,400 Kbps, as well as faster uplink speeds ranging from 500 and 800 Kbps.

AT&T also stated that it does not expect this spectrum purchase to have a material impact on its operating results.