WASHINGTON-The auction of 700 MHz guard-band manager licenses ended on Thursday after 66 rounds. The auction raised $519.9 million.
The FCC began auctioning off six megahertz of spectrum in the 700 MHz band (TV channels 60-69) on Sept. 6 to entities that will then lease the spectrum to private-wireless entities or other entities that will employ systems that will not interfere with adjacent public-safety operations. The six megahertz has been split into two licenses of four and two megahertz respectively. A total of 104 licenses were offered in 52 major economic areas. Of these, 96 were sold to nine bidders. The eight unsold licenses will be part of a future auction, the FCC said.
As guard-band managers, winning bidders will lease the spectrum for private internal use. Private systems equate closer to public-safety systems, so it is believed there will be less interference with adjacent public-safety systems.
“Guard-band managers are an innovative and efficient approach to spectrum management,” said FCC Chairman William E. Kennard. “Winning companies will be able to rely on the ebb and flow of the marketplace to lease this spectrum to third parties for their unique business needs.”
Nextel Spectrum Acquisition Corp., a subsidiary of Nextel Communications Inc., bid $337.9 million for 37 licenses including New York City, Boston, Philadelphia and Washington.
Nextel offers enhanced specialized mobile radio services to businesses using Motorola Corp.’s iDEN technology. It was the most successful bidder-winning almost all of the licenses-in the recent auctions for licenses at the 800 MHz band. The company would not say what it plans to do with the guard-band spectrum. It has in the past said its system could replace private internal systems, but in order to use the 700 MHz band in the same markets as the 800 MHz licenses it owns it would have to work with Motorola to develop a dual-band handset.
Winning the second most licenses was Pegasus Guard Band L.L.C., which won 31 licenses for $91.5 million.
Access Spectrum L.L.C. won 19 licenses for $69.07 million. Access Spectrum is the spectrum purchasing entity formed by Mark E. Crosby. Crosby is president of the Industrial Telecommunications Association and an ardent advocate for more spectrum for private-wireless entities.
Crosby said he was pleased with the auction results but said the process is tiring.
“I am a little tired. It is not for the faint of heart, and I want to go play golf,” Crosby said.
It is unclear at this point what role Crosby will play in the future of Access Spectrum since Access Spectrum will be a for-profit entity and ITA is a nonprofit entity.
“More than likely there would be some changes,” said Crosby, noting the decision will be made by Access Spectrum’s investors and the ITA board of directors. The ITA board meets here early next month.
The other winners won less than three licenses each:
Dominion 700 Inc. bid $6.3 million for the two-megahertz Washington license;
PTPMS II Communications L.L.C. won three licenses for $6.3 million;
Motorola Spectrum Inc. bid $6.2 million for New Orleans-Baton Rouge, La.;
Black Rock Partners L.P. bid $2.5 million for Louisville-Lexington-Evans, Ky.;
Harbor Wireless L.L.C. bid $42,750 for the four-megahertz Alaska license; and
Radiofone Nationwide PCS bid $42,000 for the four-megahertz Gulf of Mexico license.
