SAN ANTONIO (AP) -- AT&T Inc. sought unrestricted portions of wireless
spectrum in the recent auction by the Federal Communications Commission
because they better complimented the company's existing holdings,
executives said Thursday.

AT&T spent $6.64 billion for licenses in the 700-megahertz band auction
but avoided licenses in the consumer-friendly "C block" because of the
additional regulatory requirements, said Ralph de la Vega, chief
executive of the wireless unit.

"The auction worked well ... but it highlighted that people put a
premium on spectrum that is not encumbered by heavy regulation," said de
la Vega in a conference call with analysts and reporters.

Before the auction, San Antonio-based AT&T purchased Aloha Partners LP
for $2.5 billion. Aloha had spectrum in the "C block" without the
open-access provisions pushed by FCC Chairman Kevin Martin.
Wireless carriers, which currently tightly control their networks, had
opposed the open-access provisions.

Verizon Wireless won almost all the auctioned "C block" spectrum,
however.

AT&T's spectrum won at auction combined with existing holdings will give
it full coverage in the top 200 U.S. markets, covering more than 87
percent of the U.S. population, de la Vega said.
AT&T is already the nation's largest wireless carrier with 70.1 million
subscribers.

The auction winners were announced last month but they were barred from
talking about their plans until Thursday, which was the deadline for
down payments.

The 700-MHz spectrum is considered especially valuable for its ability
to better transmit through walls and to meet the growing demand for
faster wireless download speeds.

De la Vega said the spectrum will be used to make existing broadband
services faster and cheaper, but it will also open the door to even
newer technologies.
Next generation networks and devices could offer real-time services like
streaming high-definition video, but such services won't likely be
rolled out for several years.
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