Clearwire Says No to 700MHz; Bidder Details Emerge

Bidders in the upcoming 700MHz spectrum auction, considered a great hope for competition in wireless services, have begun to announce themselves, although a full list of participants from the FCC won’t be available until after the Dec. 28 deadline for filing upfront payments. The latest company to make its plans known is Clearwire Corp., who said Wednesday in an SEC filing that it would not participate in the auction.

The 700MHz airwaves have been earmarked for wireless broadband services, and feature indoor propagation characteristics and spectral efficiencies that support full 4G, seamless broadband deployments. WiMAX operator Clearwire recently saw its alliance to build a national footprint with Sprint Nextel disintegrate, setting back its plans to roll out national mobile WiMAX service in the 2.5GHz band. A 700MHz play would have given the operator access to more WiMAX-ready spectrum nationwide in the absence of the ability to leverage Sprint’s holdings.

Google Inc. said Dec. 3 it would participate in the auction, as expected, and Leap Wireless International Inc. will participate via a wholly owned subsidiary, according to SEC filings. Frontline Wireless LLC, which has a focus on public safety, and quad play-seeking cableco Cox Communications Inc. have also indicated they will participate.

Comcast Corp. and Time Warner Cable have both said they would not participate. D'Arcy Rudnay, senior vice president at Comcast, issued an official statement: "Comcast Corporation has decided not to bid in the 700 MHz wireless auction. The 20 MHz of spectrum acquired in the wireless auction last year with our cable partners in SpectrumCo provides us with significant long-term flexibility and many strategic options. We will continue to explore how wireless can complement our services through various partnerships and consumer trials."

As for the top cellcos, AT&T Inc. and Verizon Wireless are both expected to bid in the auction. AT&T has been adding 700MHz spectrum to its portfolio already, with the October purchase of 700MHz spectrum from mobile TV provider Aloha Partners, for close to $2.5 billion. Those licenses already cover around 196 million people in 72 of the 100 largest metropolitan markets. Verizon, which just announced its plans to go with LTE for 4G, along with a surprising embrace of open access has been heavily involved with the rulemaking process for the auction. The 700MHz band is ideal for building out a flat IP architecture such as LTE.

Sprint Nextel previously said it will not be involved in the 700 MHz auction.

The auction is slated to begin Jan. 24, but the winners will not be disclosed until the auction is complete, likely in March — the FCC has closed the proceedings to try and circumvent anti-competitive behavior.