FCC Set to Earn Over $11.1 Billion in Wireless Auction

The Federal Communications Committee (FCC) is sitting pretty, having received bids totaling $11.1 billion in its auction of 422 wireless licenses. The auction has come to a temporary stop for the holidays, and as the prices rise, more companies are dropping out.

Verizon Wireless has led the bidding all week, offering $5.5 billion for access to licenses that will allow them to offer more services and expand their mobile market. Behind Verizon is Alaska Native Wireless, part of the AT&T Wireless Group, with $2 billion in bids.

The high bids have led many companies to drop out of the running, including ALLTEL Communications, Nextel Communications Inc. and Alamosa PCS Holdings Inc., part of Sprint PCS.

Verizon has placed the high bid for one license covering New York City, offering $968.6 million, and for another license covering Boston, offering $212 million.

The auction will resume on Jan. 4, and analysts project when the auction is over, the FCC could earn $11 billion to $20 billion. Analysts also expect the auction to be completed by Jan. 20.