The auction could cost the company between US$4bil (RM17.4bil) to US$10bil (RM43.6bil), 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 organise the network, Re/code said.
The US Federal Communications Commission is expected to hold a so-called "broadcast TV spectrum incentive auction" to buy back 600Mhz wireless airwaves from broadcasters and repackage them to sell to the wireless industry.
Social Capital did not immediately respond to request for comments. — Reuters
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