Sprint said it will not participate in the upcoming AWS-3 spectrum, choosing instead to conserve cash for a potential run at next year’s planned 600 MHz incentive auction proceedings. The announcement came on the final day for bidders to announce their intentions.
“Sprint has decided not to participate in the FCC’s AWS-3 auction but will continue to evaluate the opportunities presented by the upcoming 600 MHz incentive auction,” the company noted in a statement.
The news was not surprising as Sprint has not shown much public support for the AWS-3 auction, which is officially known as Auction 97 and will include spectrum in the 1.7/2.1 GHz band. Sprint does not currently control any spectrum in the advanced wireless services band, with its current holdings focused in the 800 MHz, 1.9 GHz and 2.5 GHz bands. Most analysts noted it made little sense for Sprint to partake in the AWS-3 auction seeing as it would need to integrate a fourth band into its operations and the carrier has recently announced plans to conserve cash where it can.
Sprint also did not participate in the Federal Communications Commission’s H-Block auction earlier this year, which included 10 megahertz of spectrum at the 2 GHz band. While that spectrum was adjacent to the carrier’s current G-Block holdings in the upper 1.9 GHz that is basis for its initial LTE deployment, Sprint had stated that it would be looking to add capacity using its 2.5 GHz spectrum and coverage support with its 800 MHz holdings and potential licenses from the 600 MHz band. Dish Network ended up acquiring all of the licenses in the H-Block auction for $1.56 billion.
What’s next for AWS-3
Despite losing one significant bidder, the AWS-3 auction is still expected to boost a stellar lineup. Analysts expect Verizon Wireless, T-Mobile US and AT&T Mobility to all be active participants once the auction kicks off on Nov. 13. The total of 65 megahertz of spectrum up for bid, including 50 megahertz of paired spectrum and 15 megahertz of unpaired spectrum, sits adjacent to the AWS-1 spectrum bands that are used by all three operators to support their LTE networks.
Verizon Wireless has been the most vocal in stating its plans to participate in the proceedings, which if it proves successful would allow the carrier to further densify its LTE network.
T-Mobile US recently announced plans to raise $3 billion in debt financing, with some of those proceeds targeted at spectrum auctions. The carrier has also been very persistent in pressing the FCC for rulemaking on license sizes.
AT&T has been a bit more reserved in its support for the AWS-3 auction, though it was asking that the FCC provide more licenses covering larger geographic areas. The carrier has been more vocal in its plans for the 600 MHz auction — after threatening to sit out the proceedings, it said it plans to bid at least $9 billion in the auction tied to its pending acquisition of DirecTV.
Dish Network said it plans to participate in both the AWS-3 and 600 MHz auction proceedings, despite the fact the company is already sitting on a pile of spectrum that it has yet to commercially launch. Rural and regional wireless carriers attending the recent Competitive Carriers Association event in Las Vegas appeared reserved on the AWS-3 auction, with most seeming more focused on the 600 MHz auction.
Further adding to the potential for a bidding frenzy is the FCC’s decision to not limit bidding in Auction 97, allowing all entities to participate in bidding on all the available spectrum. The FCC did enact rules for the auction that would seem to cater to the needs of smaller operators, including smaller spectrum blocks and geographic license sizes. The FCC recently also set a reserve price of $10 billion for 1,614 total licenses up for bid.
Bored? Why not follow me on Twitter
