AT&T, Verizon, and T-mobile are competing for spectrum rights in the cities of Los Angeles and San Francisco. AT&T is willing to pay $1.5B for rights in both LA and SF, $0.5B for only LA and $0.75 for only SF. Verizon is willing to pay $1.6B for rights in both LA and SF, $1B for only LA and $0.35 for only SF. T-mobile is willing to pay $1.1B for rights in both LA and SF, $0.5B for only LA and $0.2B for only SF (The idea is that these companies prefer to have connectivity in both LA and SF since people travel frequently between these two cities; so if the connectivity is unavailable in any city under a carrier, then the total demand for that carrier is expected to be low). Suppose that the FCC implements the VCG mechanism to allocate spectrum rights. How will the rights be allocated and what would be the payments of the three carriers?