RCR Wireless News



  

FCC spectrum auction ends on $13.7 billion high note

September 18 2006 - 6:00 am ET | Kelly Hill |

WASHINGTON—The advanced wireless services spectrum auction, also known as Auction 66, closed up shop this afternoon, with bidders putting up a total of nearly $14 billion.

Click here for the latest headlines from the AWS auction. Click here for full AWS auction coverage.
The 28-day-long auction ended after 161 rounds, with 104 of the 168 registered bidders winning at least one license. All but 35 of the total 1,122 licenses up for grabs received bids.
Top 10 Highest Bidders
Bidders Net total of high bids
1. T-Mobile $4.2 billion
2. Verizon Wireless $2.8 billion
3. SpectrumCo $2.4 billion
4. MetroPCS $1.4 billion
5. Cingular $1.3 billion
6. Cricket $710 million
7. Denali Spectrum $274 million
8. Barat Wireless $127 million
9. AWS Wireless $116 million
10. Atlantic Wireless $81 million
Click here to find out who is backing these bidders.
T-Mobile USA Inc. was the big spender of the auction, winning 120 licenses with bids totaling nearly $4.2 billion. The fourth-largest U.S. carrier gained spectrum across the country, including licenses in the large markets of New York, Los Angeles and Chicago. As soon as the auction closed, T-Mobile USA put out a statement saying that it will not immediately reveal its plans for the spectrum. “The company will share more information after the conclusion of the FCC quiet period,” T-Mobile USA said in its statement. The carrier is expected to use the spectrum to build out a next-generation network to compete with its larger rivals. Smaller, flat-rate carriers Leap Wireless International Inc. and MetroPCS Communications Inc. also left the auction laden with new spectrum. Leap won 99 new licenses covering a population of 118 million people, for which it paid $710 million. Leap-backed Denali Spectrum License L.L.C. won one Great Lakes regional license covering about 58 million people, with a bid total of $365 million. MetroPCS, meanwhile, spent $1.4 billion on eight spectrum licenses, but those licenses cover more than 144 million people. Sprint Nextel Corp.’s joint venture with several cable companies came away with spectrum covering 267 million potential customers and won the second-highest number of licenses in the auction: 137 licenses with a total price tag of about $2.4 billion. Only NextWave Telecom Inc.-backed AWS Wireless Inc. won more individual licenses, with a final tally of 154 licenses for $115.5 million—though they cover a relatively small 60 million pops. Other wireless winners included:
  • Verizon Wireless, which gained 13 licenses at a total cost of $2.8 billion. The carrier gained 20 megahertz of spectrum covering the U.S. east of the Mississippi River, plus additional licenses in Louisiana, Hawaii and Arkansas.
  • Cingular Wireless L.L.C. spent $1.3 billion for 48 licenses around the country, including regional licenses in the West and Central United States, plus spectrum in markets such as Los Angeles, Phoenix, Denver, Boston, Dallas-Ft. Worth and Atlanta.
  • Dobson Communications Corp. bid $65.9 million on 85 licenses.
  • Barat Wireless L.P., which was backed by U.S. Cellular Corp., won 17 licenses with an overall price tag of about $170 million. The company bought spectrum in markets such as Tulsa, Okla.; Milwaukee; St. Louis; and a regional Mississippi Valley license.
Top 10 highest bids
License Bidder Round Bid Amount
AW-REA001-F
Northeast
Cellco Partnership d/b/a Verizon Wireless 16 $1,335,374,000
AW-REA006-F
West
T-Mobile License LLC 15 $894,590,000
AW-REA003-F
Great Lakes
Cellco Partnership d/b/a Verizon Wireless 14 $615,923,000
AW-REA002-F
Southeast
Cellco Partnership d/b/a Verizon Wireless 14 $572,446,000
AW-REA001-D
Northeast
MetroPCS AWS, LLC 18 $552,694,000
AW-REA001-E
Northeast
T-Mobile License LLC 17 $472,553,000
AW-REA005-F
Central
T-Mobile License LLC 15 $470,290,000
AW-BEA010-B
NYC-Long Is. NY-NJ-CT-PA-MA-VT
SpectrumCo LLC 20 $468,178,000
AW-CMA001-A
New York-Newark, NY-NJ
T-Mobile License LLC 23 $396,232,000
AW-REA003-D
Great Lakes
Denali Spectrum License, LLC 20 $365,445,000
Click here to find out who is backing these bidders.



Post a Comment




[Post a comment to this article] [Hide]