AT&T forking over a $1.3 billion down payment for auction wins

No surprises here, but boy is that going to be a difficult expense to justify on the ol' corporate card. AT&T says it'll pay a $1.3 billion down payment to the FCC within the next 10 days to get a lock on that spectrum it just won, $500 million of which was paid up front before the auction began. The company will be pushing the remaining $5.3 billion over the counter before April 17, and is financing the purchase with funds from operations and a good bit of debt. We haven't seen a similar filing from Verizon yet, but we're guessing the company is facing similar deadlines for its $9.36 billion of spectrum.

[Adam @ Mar 21st 2008 10:36AM]

You could at least update that picture of yours!

[Chris Macdonald @ Mar 21st 2008 1:10PM]

yeah something like the death star paying the government for our air...

[CB17 @ Mar 21st 2008 3:06PM]

@Chris MacDonald

Why? Verizon hasn't paid yet.

[duffiecochran @ Mar 21st 2008 10:48AM]

so REALLY, AT&T and Verizon give the FCC (A Federal Orginization) around 15 billion, who turn most of that over to the United States Gov't, who turn must of that over to the military, who use most of it for our efforts in Iraq and Afghanistan, thereby raising our taxes even more. Funding a war and getting a piece of 700mhz freq. in return ftw. 15 billion should get us another day or so in Iraq.

[Adam @ Mar 21st 2008 10:52AM]

brings up the next question, is this purchase taxable? =)

[Bryan @ Mar 21st 2008 10:54AM]

Actually 15 billion will give us about 42.8 more days in Iraq or about 340 million per day.

[UKNigel @ Mar 21st 2008 11:34AM]

Ron Paul would have none of that madness.

[Bryan @ Mar 21st 2008 10:57AM]

And . . . the US military spending is only about 6.9% of the total GDP or 439.3 billion so you're waaaaayy off again.

[rip @ Mar 21st 2008 4:25PM]

And that's because Iraq is mostly off the books. As in just debt. As in one trillion or so in debt.

So yeah, this sale should pay for a day or so of interest.

We'll be paying for Iraq for the next 150 years.

[Todd @ Mar 21st 2008 11:12AM]

Sure Verizon has to cut that 9 billion dollar check, but they stand to make ten times that from their cut of location based Adsense ad revenue on all VZ phones that run Android.

What was Google's revenue from AdSense last year? 5 billion? At that's just for web advertising, the potential for Adsense ads in Android phones that are ware of your general location ( via cell tower triangulation ) are off the chart.

P.S. Cry me a river AT&T now you know how I feel paying $60 a month for "unlimited" data that you cap at 8 gigs a month.

[MissUniverse @ Mar 21st 2008 11:16AM]

Now THAT is a great picture illustration.

That designer should get some credit for the wit and creativity.

Hope to see more of these novel illustrations along with the stories

[souravgh @ Mar 21st 2008 11:19AM]

That should be the 'remaining 0.53 billion' not 'the remaining 5.3 billion'

[Tim @ Mar 21st 2008 11:28AM]

No. It shouldn't.

[Tim @ Mar 21st 2008 11:34AM]

I meant to clarify further but hit the wrong button.

At&t spent a little over $6.6b according to rcr news. They are handing over $1.3B right now, leaving $5.3b due by april 17. The $500m down payment they mentioned helps cover the "a little over" part.

So the math in the article is correct, but I can definately see where the mix up was.

[souravgh @ Mar 21st 2008 12:41PM]

i stand corrected.

[Crap @ Mar 21st 2008 11:38AM]

We have the best government that money can buy and you pay the tab in the end. It's the 85% who slave hand to mouth so the other 15% don't.

[macona @ Mar 21st 2008 11:53AM]

Can I pay with a check?

[Donald @ Mar 21st 2008 12:12PM]

Western Union only.

[macona @ Mar 21st 2008 12:26PM]

Crap, at least let me use paypal.

[crho85 @ Mar 21st 2008 4:27PM]

-Sure, I'll write a check... BOING!!!!!
*Are you implying that this check will bounce?

Thanks to the simpsons

[Edward @ Mar 21st 2008 12:10PM]

Bryan, you could look at it another way, military spending is about %50 of US discretionary spending not including "black" military funds of which we know nothing. Also the US spending on the military is more than the rest of the world combined. A trillion $ a year could be spent a whole lot better IMO.

[mark @ Mar 21st 2008 12:20PM]

are they paying with paypal?

[MikeE @ Mar 21st 2008 12:48PM]

I'd select Bill Me Later...

[AlphaTeam @ Mar 21st 2008 12:56PM]

You think they using Merchant rates or the Standard rates?

[Fed @ Mar 21st 2008 12:55PM]

I'm on Verizon, looking forward to some new technologies in the future.

Oh yeah quit bitching about Iraq. News flash - it doesn't matter how much it costs or how many people have died, we are going to stay in Iraq. Even if by some miracle Hilary wins. These are the same people who bitch about gas prices. Maybe if you didn't drive a V8 SUV that gets 11MPH you wouldn't complain. Lets say gas prices jumped 20 cents. A 15 gallon tank would only cost an extra $3.00, you can barely get a gallon of milk for that.

.\end rant

[Ed @ Mar 21st 2008 3:47PM]

There are V8 SUVs that only go 11 mile per hour?

[rip @ Mar 21st 2008 4:47PM]

Regarding Iraq, you're right. We're stuck there.

It still doesn't change the fact that a fucking moron invented a war so he could play soldier, costing American lives and creating so much debt that our grandchildren will be paying it. Not to mention the fact that the rest of the world either hates us or looks at us like we're the kid that's been dropped on it's head too many times.

I used to believe that the President was largely a figurehead, with the government having too much inertia for one person to affect it all that much. George has proven me wrong. He has singlehandedly completely fucked up this country. Impressive in it's own way.

He's like the irresponsible/stupid friend that goes on a bender and everyone has to clean up the mess. Except he isn't a friend, it isn't fun or funny, and it wasn't his life he was screwing up, it was a whole country.

As for gasoline prices, they have gone up .50 in the past year alone. And just about doubled in the past 5 years. And will probably go up another .50 in the next year. Going up only .20 is just wistful thinking. And part of the reason milk costs so much is because of gasoline prices. How do you think the milk gets to the supermarket?

[Jared @ Mar 21st 2008 1:11PM]

Why is everyone talking about Iraq? Last I checked this was an auction for airwaves. Keep the chatter about Iraq to yourselves.

[TRAFFICBLOWS @ Mar 21st 2008 1:16PM]

Ummmm with all the money I've shelled out over the years, I wouldn't be surprised if VZW pays upfront in cash.

[Chris the Computin' Goo Roo @ Mar 21st 2008 3:18PM]

Verizon and AT&T bought up the 700 MHz spectrum in Iraq with "black" government funds while driving V8 SUVs that get 11 mpg?

When did this happen????? Why didn't the Washington Post report this.....

[jason @ Mar 21st 2008 3:23PM]

Can you PLEASE stop using that LAME eBay image every time you post about the spectrum auctions? Yeesh.

[mmmmaher @ Mar 21st 2008 4:56PM]

let's for a moment get past the funding of the war in Irag & Afganistan. I would really like to know wher this money ( the proceeds of the 700 mhz spectrum ) is going to be allocated. We as American citizens benifited from the public ownership of this spectrum before it's sale. So am I to understand that we will not recieve any net profit that this will generate? I have read about the $40.00 check that every one is getting (provided you apply for the stiepend)for an digital receiver, but shouldn't these funds also be divided among the public? Thank-you for not posting sarcatic responces, I am only trying to pose an honest question.

[mmmmaher @ Mar 21st 2008 4:57PM]

spelled "stipend" - sorry for the typo.

[Kevin-Mahalo @ Mar 21st 2008 5:02PM]

Change the photo to AT&T and Verizon! Not only Verizon won!!!!!!!!

[michas_pi @ Mar 21st 2008 10:47PM]

Is it possible to have a joint eBay account?

[Kevin-Mahalo @ Mar 23rd 2008 1:44AM]

If you mean a joint account meaning connecting 2 accounts together... Then I don't think so! Sorry, :P!