AT&T got permission from the U.S. Federal Communications Commission (FCC) to buy the licenses to use this 700MHz spectrum from Qualcomm, giving AT&T an advantage it was looking for in its failed deal to buy T-Mobile: the ability to compete against Verizon with the hot new 4G LTE wireless services. That kind of speed makes smartphone data connections feel as fast as Wi-Fi and wired Internet service.
The timing is fortunate for AT&T in another sense: Its arch nemesis Verizon Wireless bought a large chunk of wireless spectrum from Comcast for $3.6 billion earlier this month -- 122 licenses that could reach about 259 million data users, which is about 80% of the US population.
As the growing legions of enthusiastic smartphone users gobble up more and more data, it's difficult for a company like AT&T to provide such services without the wireless spectrum on which to deliver them. The popularity of smartphones is exploding, and space on the wireless spectrum is becoming more scarce. Obviously, the regulatory approval of this large chunk of 700MHz spectrum is a huge win for AT&T.