Has AT&T been reading ‘The Prince’?

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In an interesting post today, Glenn Fleishman explores what AT&T’s purchase of 700 MHz spectrum from Aloha Partners today means for Verizon. While my conspiracy theory radar tingles a bit, I had this same thought earlier today. No point in paraphrasing; enter the blockquote.

AT&T spends $2.5b for 12 MHz across 200m people in the 700 MHz band: Let’s talk two-steps-ahead. In the terms for the C Block licenses that Google wanted very open and Verizon and AT&T wanted to have cell-spectrum-like restrictions, AT&T did a volte-face and said it would agree to most of the openness that Google wanted. Huh, I said, I wonder what made them do that? Well, it’s gamesmanship. AT&T was obviously already in a position to acquire Aloha Partners’s licenses.

This means that AT&T is reverse-encumbering the other band. While the C Block involves more bandwidth and greater coverage, Verizon is now in a worse position because of the lack of device and application lock-in if they choose to bid in 700 MHz as AT&T will already have holdings. AT&T can have the flexibility to deploy different services in the different 700 MHz blocks. I think.

AT&T can now focus on bidding on the A and B blocks, which can compliment their Aloha acquisition and which don’t come with open-access restrictions. So did AT&T pull off a Machiavellian ploy to saddle Verizon with an open access mandate?

Oct 9, 2007 | Comments | Tags: , , ,

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