August 10, 2006

Satellite Pair Leads Bids in F.C.C. Auction
By THE ASSOCIATED PRESS

http://www.nytimes.com/2006/08/10/business/media/10spectrum.html?pagewanted=print


WASHINGTON, Aug. 9 (AP) — A partnership that includes the nation’s two top 
satellite television providers emerged as the leading bidder at the close 
of the first day of a major auction of public airwaves.

Wireless DBS, consisting of EchoStar Communications and the DirecTV Group, 
was the top bidder on Wednesday, offering $282.5 million for 13 licenses.

After the first day, net bids in the auction totaled $897.8 million, 
according to the Federal Communications Commission, which is running the 
auction. The Congressional Budget Office estimates that the sale will 
ultimately raise $10 billion to $15 billion.

The F.C.C. said that the auction would “lead to the deployment of new 
services and wireless broadband for consumers.”

The auction will continue until no more bids are submitted, which means it 
could last several weeks.

The satellite television companies outdistanced T-Mobile USA, the most 
active bidder in the morning round. T-Mobile, a subsidiary of the German 
telecommunications giant Deutsche Telekom, ended the day with top bids 
totaling $121.7 million on 23 licenses. The third-leading bidder was 
SpectrumCo, an alliance of the nation’s largest cable television providers. 
The group bid $106.9 million on four licenses.

Bidders are competing for the right to use portions of the radio spectrum, 
a publicly owned, extremely valuable highway in the sky that allows sound, 
data and pictures to be transmitted from one place to another.

A total of 1,122 licenses are being auctioned in a sale that is the largest 
offering of mobile wireless spectrum to date.

In late 2000 and early 2001, a spectrum sale attracted $16.9 billion in bids.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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