FCC's wireless auction winds down
Spectrum-hungry T-Mobile USA leads the pack of bidders for airwaves to
carry advanced wireless services such as broadband and video.
By Reuters
Published: September 14, 2006, 4:26 PM PDT
Tell us what you think about this storyTalkBack E-mail this story to a
friendE-mail View this story formatted for printingPrint Add to your
del.icio.usdel.icio.us Digg this storyDigg this
The U.S. Federal Communications Commission's auction of airwaves for
advanced wireless services wound down on Thursday with few new bids
offered and spectrum-hungry T-Mobile USA in the lead.
T-Mobile, the No. 4 U.S. wireless carrier, has provisionally won 119
licenses in major markets like New York City and Chicago with offers of
almost $4.2 billion after 141 rounds.
The company, owned by Deutsche Telekom, had been expected to be the most
aggressive bidder in the FCC sale because in many key markets, it has
fewer airwaves to serve customers than larger rivals have.
So far, the auction has grossed almost $13.9 billion, but would net
about $13.7 billion, because of discounts offered to entrepreneurial
bidders. Analysts had expected the sale to raise between $8 billion and
$15 billion.
Existing wireless companies want more airwaves so they can improve
services as well as expand to include offerings like high-speed Internet
access and video.
Four bids were made in the 141st round on Thursday. The auction will
resume on Friday. The sale ends when there are no more bids, withdrawals
or other activity.
Verizon Wireless, a joint venture of Verizon Communications and Vodafone
Group that is the No. 2 U.S. carrier, was not expected to be a big
bidder in the sale. However, so far it has been in second place in the
bidding, offering $2.81 billion for 13 licenses that include the
northeast and southeast United States.
In other news:
* Redmond presses play for Zune
* Get ready for ads on your cell phone
* Behind Google's German courtroom battle
* News.com Extra: Microsoft feels the heat from small competitors
* Video: Introducing the Treo 750v
A surprise player in the auction was a consortium of the top U.S. cable
television providers that teamed up with Sprint Nextel. Some analysts
see that as an effort to expand high-speed Internet access.
The group, dubbed SpectrumCo, includes cable providers Comcast and Time
Warner. It currently has the high bids for 137 licenses, offering almost
$2.4 billion.
"Both the cable (industry) and Sprint-Nextel have a strategic interest
in helping one another, at least in these early stages of cable's foray
into wireless, as each draws on the core strengths of the other to help
set both apart from the Bells," said Medley Global Advisors analyst
Jessica Zufolo, referring to the traditional telephone carriers.
A joint venture of rival satellite television providers, DirecTV Group
and EchoStar Communications, dropped out after just a few days of
bidding despite making the largest deposit of all bidders ahead of the sale.
Story Copyright © 2006 Reuters Limited. All rights reserved.
http://news.com.com/FCCs+wireless+auction+winds+down/2100-1039_3-6115942.html
---
---
--
WISPA Wireless List: [email protected]
Subscribe/Unsubscribe:
http://lists.wispa.org/mailman/listinfo/wireless
Archives: http://lists.wispa.org/pipermail/wireless/
