Aug. 16 (Bloomberg) -- T-Mobile USA Inc. and Verizon Communications Inc. made the highest offers for U.S. airwaves at a government auction, driving the bidding past $10 billion.

T-Mobile, the fourth-biggest U.S. mobile-phone company, offered $3.05 billion for 77 licenses, according to preliminary results released today by the Federal Communications Commission. Verizon, owner of the second-largest U.S. wireless provider, offered $2.8 billion for four licenses, including $1.34 billion for the biggest in the northeastern region.

Through 20 rounds of the auction, telephone companies have been the most aggressive in trying to expand their coverage to offer more customers high-speed services. The bids are preliminary and the FCC will hold more rounds tomorrow, giving other companies a chance to top today's offers. The process may last weeks before winners are announced.

``In the end it comes down to willingness to spend,'' said Jeff Heynen, an analyst covering broadband and Internet television at Infonetics Research in Raleigh, North Carolina. ``Telcos are the only guys that have the funds to be able to do that.''

A joint venture between EchoStar Communications Corp. and DirecTV Group Inc., the two largest U.S. satellite-television companies, dropped out of the running.

The auction of the 1,122 spectrum licenses, which reached $10.3 billion today, may raise as much as $15 billion, making it the FCC's second-most lucrative sale, according to government projections.

Widening, Deepening

T-Mobile, a unit of Bonn-based Deutsche Telekom AG, is aiming to catch up with larger rivals Verizon Wireless and Cingular Wireless LLC in offering videos and games.

New York-based Verizon wants more users for services such as mobile video and has leading bids in the Great Lakes and southeastern regions.

``For T-Mobile it's widening and for Verizon it's deepening,'' Heynen said. T-Mobile, owned by Deutsche Telekom AG, is making its biggest bids in the western, northeastern and central regions.

SpectrumCo LLC, a partnership that includes Comcast Corp., Time Warner Cable Inc., and Sprint Nextel Corp., was the third- biggest bidder, offering $1.54 billion for 79 licenses.

``Cable companies as expected are being somewhat restrained and we view their participation as experimental,'' said Aryeh Bourkoff, an analyst at UBS AG in New York.

Shares of Verizon fell 16 cents to $34.23 in composite trading today on the New York Stock Exchange. Deutsche Telekom shares rose 16 cents to 11.21 euros in Germany. EchoStar, located in Englewood, Colorado, added 15 cents to $33.11, and El Segundo, California-based DirecTV gained 27 cents to $18.06.

To contact the reporters on this story: Ari Levy in San Francisco at at alevy5@bloomberg.net.

Last Updated: August 16, 2006 19:08 EDT