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March 24, 2008

Frontier Wireless to Compete with AT&T, Verizon?


Frontier Wireless, owned by Colorado-based satellite television company EchoStar, is the newest player to win nearly enough spectrum licenses to create a nationwide footprint. The added licenses could allow Frontier to build a wireless network to compete with the other nationwide carriers in the United States.

 
According to news reports, Frontier Wireless bid $711.8 million to win licenses for 700-megahertz broadcast spectrum in 168 cities across the country. The FCC (News - Alert) auctioned 1,099 licenses covered by the 700-megahertz frequency range, which is currently used for local over-the-air TV. Each license grants exclusive use for 10 years.
 
The 700-megahertz frequencies are capable of penetrating buildings and are ideal for development of a new generation of wireless broadband services.
 
Frontier Wireless has not indicated what it will do with its new spectrum, nor has it commented on the auction, which included a number of leading operators.
 
Formed by Charlie Ergen’s satellite television and technology company specifically to bid on wireless spectrum, Frontier Wireless committed $23 million for an E block license covering the Denver and Boulder, Colorado area, according to Bizjournal.
 
Telecom giants, including AT&T and Verizon (News - Alert), also bid for Denver-Boulder licenses in other spectrum ranges.
 
EchoStar recently split into two companies — EchoStar Corp, a provider of technology such as set top boxes, and DISH Network, a satellite television provider.
 
Keep an eye on what Frontier does with its newly won spectrum, and whether it plans to make a run at the other nationwide carriers with its own expanded network.
 
 
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