Space Data Puts Up Half Of $8.3M Bid In Narrow-Band Auction

Communications Today, Nov 5, 2001

Space Data plans to use antennas attached to weather balloons to offer messaging and paging services across the United States. To further that plan, the company bid $6.4 million for spectrum licenses that give it 1.4 MHz nationwide in the narrow-band PCS 900 MHz bands.

The Federal Communication Commission garnered $8.3 million in the 900 MHz auction of eight nationwide spectrum blocks and seven blocks in each of the country's 51 major trading areas. Five bidders acquired 317 of the 365 licenses in bidding from Oct. 3 through Oct. 16.

Phoenix-based Space Data bid $4.3 million for seven nationwide swaths totaling 1.05 MHz and $2.1 million for regional licenses that add another 0.35 MHz to its nationwide coverage in the 900 MHz bands. With the bidding credits Space Data got from the FCC for being a small company and for offering coverage in tribal lands, the company expects to pay $4.3 million to cover its bids.

Pittsburgh-based Allegheny Communications was the second highest bidder in the auction behind Space Data, winning 0.1 MHz of nationwide spectrum for $378,750, and 100 regional licenses for $1.4 million.

Space Data has received regulatory approval to have its antennas carried to 100,000 feet by the 75,000 balloons the U.S. National Weather Service launches a year to record atmospheric data. Each antenna will cover an area 360 miles in diameter, an area a wireless carrier would have to build 12 cell sites to cover.

Space Data will pay the Weather Service $300 to $400 for each balloon launched with its 4-pound wireless antenna packages. The company expects to pay $15 million to $20 million annually to launch its antennas.

--Malcolm Spicer, mspicer@pbimedia.com

Look for additional coverage of the narrow-band PCS operations space in the next issue of PBI Media's Wireless Data News, available on Nov. 7. >TK TeleCommunication Systems [TSYS]: