Verizon was the winner of the recent FCC spectrum auction, spending $52.9 billion to secure new wireless spectrum.

According to Verizon's recent announcement, the company won new spectrum in the recent FCC auction and has big plans to improve its 5G network. In a related live stream presentation to investors, the company also revealed plans to offer more premium plans to U.S. customers with the new capabilities.

The new C-band spectrum, once reserved for the large satellite TV networks that preceded today's Dish and Direct TV Ku-band antennas, is an uncongested strip of highway for potential traffic, and many European and Asian global markets for 5G coverage.

Because Verizon's nationwide 5G network shares the same low-band spectrum as 4G, current 5G performance has not reached the promised performance levels in many areas of the United States. (See recent article: Verizon's new 4G network is so fast it puts most 5G to shame - here's how)

Faster performance is possible with Verizon's millimeter wave (or mmWave) spectrum (Verizon is Ultra sold as Wideband), but that faster performance is limited to some of the 60+ cities in the US.

Verizon hopes to change this situation next year by adding the C-band spectrum it just purchased. Carriers rely on their holdings of these radio spectrum bands to provide the network performance and coverage their customers pay for, and this type of auction opportunity is a great opportunity to build new network coverage and capabilities.

The C-band frequency bands are typically between 4 GHz and 8 GHz, but satellite providers primarily use the upper frequency bands to offer their services, leaving the lower bands open for wireless providers. The C-band frequencies that Verizon has acquired are around 3.7 GHz.

Verizon could enhance the range of its faster network by using C-band spectrum for 5G. Millimeter waves may be fast, but they don't fly very far, and you usually need to be near a tower to enjoy their speed; C-band extends that coverage to a wider area, expanding Verizon's ultrawideband footprint.

However, Verizon will not roll out access to C-band to all Verizon customers, but will also use it as an opportunity to solidify a tiered 5G experience by reserving it on a premium plan. Currently, Verizon includes 5G coverage in its most expensive monthly data plans, which cost between $80 and $90 per month for a single line. The carrier's entry-level data plans require an additional $10 per month for ultra-wideband access.

All of Verizon's prepaid plans have access to 5G coverage, which is currently slower. Only the most expensive unlimited prepaid plans have access to ultra-wideband.

This policy appears to be continuing as Verizon consolidates C-band capacity to enhance its ultra-wideband network. Currently, this includes devices like the iPhone 12, Samsung Galaxy S21, Google Pixel 5, and LG Wing.

Going forward, Verizon will push for the inclusion of C-band capabilities in mid-range and budget phones, offering more than 20 C-band capable devices by the end of the year and ensuring that all Verizon phones work on the new ultrawideband 5G network.

The improved coverage will begin to be rolled out across North America over the next three years, with plans to reach the first 100 million customers by the end of 2021. The added C-band spectrum may not benefit users of standard unlimited plans, but subscribers to Play More, Do More, and Get More unlimited plans will get improved speeds and coverage, and pay-as-you-go plans can pay extra for faster upgrade to 5G service.