(Reuters) - Former Facebook executive Chamath Palihapitiya said he is creating a company to bid for airwaves in the United States and compete with AT&T Inc and Verizon Communications Inc to offer wireless services, Re/code reported.
The auction could cost the company between $4 billion-$10 billion, Palihapitiya, founder of venture capital firm Social Capital, told Re/code.
The new venture, to be called Rama, will use software from one of Palihapitiya’s companies, LotusFlare, to help manage and organize the network, Re/code said.
The U.S. Federal Communications Commission is expected to hold a so-called “broadcast TV spectrum incentive auction” to buy back 600 megahertz wireless airwaves from broadcasters and repackage them to sell to the wireless industry.
Social Capital did not immediately respond to request for comments.
Reporting by Kshitiz Goliya in Bengaluru; Editing by Anil D'Silva