Wireless Carriers Bid for FCC Airwaves

Regulators in Washington began auctioning a slice of spectrum that will let users gain access to the Internet over the airwaves or create wireless local phone networks that compete with traditional wired networks. Twenty-four companies--including units of BellSouth Corp., Pacific Telesis Group, Comcast Corp. and a Bell Atlantic Corp./Nynex Corp. joint venture--are bidding for the rights to offer “wireless communications service.” The first day of bidding in the multi-day sale totaled $5.3 million. Analysts said recent financial problems among wireless carriers will put downward pressure on prices. “I expect prices to go very low for this type of spectrum,” said Elliott Hamilton, analyst at Strategis Group, a Washington-based consulting firm. The FCC is auctioning 128 licenses and is not dictating what services companies can offer over this portion of the spectrum.