Winning the FCC’s spectrum auction for the nationwide C block of 700-MHz spectrum — the 22-MHz band being abandoned by television broadcasters — means Verizon Wireless will deploy its fourth-generation Long Term Evolution (LTE) technology in 2010, CEO Lowell McAdam said Friday in an investor conference call.
The new spectrum, combined with Verizon’s existing network, “provides new flexibility as we execute our high-growth business model,” McAdam added.
“We now have sufficient spectrum to continue growing our business and data revenues well into — and possibly through — the next decade, and this is the very best spectrum with excellent propagation and in-building characteristics,” he said.
The combination of “national, contiguous, same-frequency C-block footprint and our transition to LTE” will spur development of a “new wave of consumer electronics and applications using this next-generation technology” — and Verizon will be the “preferred provider” for these developers, he said.
“In all, this spectrum positions us well to preserve our current advantage and reputation as the nation’s most reliable wireless network and the leader in data services. This is a wise investment in future data-growth opportunities,” he said.
Earlier in the week, AT&T — which is also adopting LTE as its fourth-generation technology — said it had spent $6.6 billion on B-block licenses. AT&T says its 4G network will also be running in 2010.
Even though Verizon’s spectrum is almost twice as deep as AT&T’s, 12 MHz is more than adequate to handle LTE. AT&T’s 12-MHz spectrum — plus the 700-MHz spectrum it picked up from Aloha Partners — mean Verizon and AT&T will be duking it out well into the next decade.
With both companies backing LTE and gaining access to the 700-MHz spectrum, “the focus will be on new types of data services,” said Tim Bajarin, principal analyst with…