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Home - AUCTION NEWS: Verizon Wireless shows renewed interest as bids dwindle
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AUCTION NEWS: Verizon Wireless shows renewed interest as bids dwindle

by RCR Wireless News September 7, 2006
written by RCR Wireless News September 7, 2006 Share
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WASHINGTON—Bidding has slowed to a trickle in the advanced wireless services spectrum auction, with thirty or fewer new bids received in the last few rounds.

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But a few tussles are still ongoing, including Verizon Wireless trying to edge the Sprint Nextel Corp.-cable company joint venture out of spectrum in Louisiana. Verizon Wireless is also fighting for licenses in Hawaii. The nation’s No. 2 carrier had been sitting on the sidelines during most of the auction after picking up several of the most expensive licenses in early rounds.

In round 93, Verizon Wireless placed high bids for a 20-megahertz B-block license in Hawaii with a bid of around $3.9 million, nudging out previous high bidder and designated entity Atlantic Wireless L.P. The two companies have been jousting over that spectrum for the past several rounds. Verizon Wireless previously went after a 20-megahertz F-block license in Hawaii, taking the spectrum briefly from T-Mobile USA Inc. before the smaller carrier won the license back with a bid of $5.4 million. T-Mobile USA’s bid on the Hawaii F-block license has remained unchallenged for three rounds.

As of round 93, the Sprint Nextel-cable company JV had outbid Verizon Wireless for three licenses in Louisiana. The 20-megahertz licenses cover Monroe, Lake Charles and Shreveport, La., and have been bouncing between the two competitors for several rounds. The JV held the licenses in round 93 with high bids of $783,000 for Monroe, $1.8 million for Lake Charles, and $1.7 million for Shreveport.

MetroPCS Communications Inc. added to its holdings in recent rounds as well. The carrier outbid Cingular Wireless L.L.C. on a 10-megahertz Las Vegas C-block license for $10.4 million in round 91. In round 93, MetroPCS added a C-block license in Grand Rapids, Mich. with a price tag of $6.8 million. The local unlimited service provider had high bids on seven spectrum licenses worth about $1.4 billion as of round 93.

Meanwhile, Leap Wireless International Inc. continues to go back and forth with DE Daredevil Communications L.L.C. for spectrum in Arkansas. Also, NextWave Telecom Inc. was outbid on three licenses in Vermont and one in New Hampshire by smaller competitor Vermont Telephone Co. Inc.

The auction bids so far total about $13.8 billion and only 40 licenses have not received bids.

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