The FCC said on Monday it raised $38.3 million from the sale of two nationwide air-ground spectrum licenses it put up for auction on May 10.
After 144 rounds of bidding, the winning companies were AC BidCo LLC and LiveTV LLC. AC BidCo, an affiliate of AirCell Inc., paid $31.3 million for three MHz C-block licenses, while LiveTV paid $7 million for one MHz D-block license. LiveTV is owned by discount airliner JetBlue Airways.
The auctioned spectrum is used by Verizon Airfone to provide seat-back telephone service. However, Airfone’s nonrenewable license expires in May 2010 and, within two years of the grant of the new air-ground licenses, the company must stop operating in the three MHz of the band corresponding to License C so the new licensees can take over. Airfone will be allowed to operate in the remaining one MHz of the band, which corresponds to License D, until its license expires in 2010.
The four MHz of air-ground spectrum in the 800 MHz band can be used to provide communications services, including broadband Internet access, to aircraft passengers. This auction marked the first time the FCC has auctioned spectrum licenses in different band plan configurations.
FCC www.fcc.gov
