What Happens February 2009? 700Mhz spectrum currently used by UHF TV channels will be vacated for other uses.

How much spectrum? Appears to be 60Mhz. That's more than the original national A/B cellular spectrum combined.

Lower Spectrum, Better Building Penetration? 700Mhz should be able to cover large areas including providing reasonable building penetration especially compared to 1900Mhz PCS which is the only other "new" spectrum that has been made available in recent time (for things like cellular).

Will it be used for cellular? It all depends on who bids and wins FCC auctions. It is very likely that much of it will be used for cellular and data services. Anyway this may be exciting for 4G data and voice cellular type service, including new broadband options to the home. Time will tell.

More on this: See Engaget Article