WASHINGTON—AC BidCo L.L.C., an affiliate of AirCell Inc., is currently the top bidder at more than $13 million for a three-megahertz license to offer air-to-ground services in the 800 MHz band.
AC BidCo’s bid at the end of round 16 corresponds with a high bid from Space Data Spectrum Holdings L.L.C. for $296,000 for one megahertz of ATG spectrum.
AirCell offers air-to-ground voice services for private aircraft. Space Data uses balloons instead of towers to offer broadband services.
Bidding in the Federal Communications Commission’s ATG auction resumed after the FCC suspended bidding Thursday. The FCC did not give a reason for the suspension.
The commission decided to auction the spectrum, which is currently being used by Verizon Airfone Inc., because it said the spectrum underused.
The ATG auction consists of four megahertz offered in three license combinations. For this auction, the FCC is using a new procedure to ensure that no one entity or its affiliates control all four megahertz by allowing companies to place bids on specific licenses. These licenses correspond to one of three band plans. At the end of each round, the band plan with the highest bids wins, along with the bidders for the respective licenses.
Bidding appears to be focused on option No. 3 which is a three megahertz license and a one megahertz license.
Other qualified bidders include: Verizon Airfone; AMTS Consortium L.L.C.; Intelligent Transportation & Monitoring Wireless; WorldCell Inc.; JetBlue’s LiveTV L.L.C.; and Unison Spectrum L.L.C.
Verizon Airfone, the only licensee currently offering service, must vacate the band by May 2010. If Verizon Airfone wins the auction, Verizon Airfone must detail its transition from existing operations to the new band plan.
