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AWS-3 Spectrum Auction Over, Bids Total $44.89 Billion

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Duopoly gets bigger

rwalford79

Jan 29, 2015, 12:46 PM
And here we go - AT&T and Verizon get bigger by default. Adding to their AWS treasure trove of spectrum for capacity and speed. While smaller companies who could really do good with it in the markets they need it, like T-Mobile, are shut out.

With this massive win by AT&T and Verizon, I hope the FCC states, "Okay, you have more than enough, you are no longer in a spectrum crunch, so you need not bid on 600Mhz spectrum, you have more than enough spectrum in all bands to last you for a few decades" and then let T-Mobile, Sprint and USCC scoop it up.
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acdc1a

Jan 29, 2015, 1:04 PM
This is what happens when you have a finite resource like spectrum and try to run a no rules auction. I like government intervention less than most, but on a government run finite resource auction, they need to have rules to avoid a government sponsored duopoly.
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rwalford79

Jan 29, 2015, 2:06 PM
I agree - Which I think is why the FCC is catering to T-Mobile and Sprint more lately. They prevented the merger of each to get bigger, so at their own hands, they now own the responsibility to ensure that the duopoly doesnt get bigger and that the smaller companies they prevented from merging together, can now operate efficiently like they hoped.
To do this, would be to issue carte blanch to Sprint and T-Mobile in the 600Mhz auction but not to allow AT&T and Verizon in the game plan by way of spectrum counts. Also the next time AT&T and Verizon claim they are short on spectrum and have a crunch and cant offer this or expand here or there, the FCC should then pull those licences and say, "Okay, well its a use it or lose it situation" to wh...
(continues)
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Jarahawk

Jan 29, 2015, 4:03 PM
"let T-Mobile, Sprint and USCC scoop it up."

That's not going to happen. The only stipulation for purchasing spectrum should be that the winner must actually use the spectrum rather than hoard it, effectively freezing out its competitors.
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gfondeur

Feb 3, 2015, 4:12 AM
I like that
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Slammer

Jan 29, 2015, 5:51 PM
Not only will the FCC allow the big two to participate in the 600Mhz auction, it and the owners of said spectrum are counting on it. The spectrum will be the most money generated that only the super financially balanced carriers will be able to afford. And that is what it is all about.

However, it is my hope that the FCC will place forfeiture of some of the 700Mhz licenses held by these carriers, allowing the smaller carriers to bid to create a more robust competitive footprint.

John B.
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DarkStar

Jan 30, 2015, 2:04 PM
If T-Mobile or Sprint wanted it they could afford it. They have very large parent companies. Those parents companies don't think they need that Spectrum. Plus over 50% of the population is with Verizon and AT&T so them getting this spectrum it helps the majority of the people in the US. How is more people getting more spectrum a bad thing?
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rwalford79

Feb 1, 2015, 3:54 AM
I think you should research more about the parent companies of both Sprint and T-Mobile before assuming both are going to invest billions into them.

AT&T and Verizon both have a plethora of spectrum that if used properly in aggregation could be used to increase the speed and capacity of their networks. Instead, they are going to be inefficient by not aggregating the spectrum, and claiming they are still in a crunch for more - the reality is they are doing this to claim they need more, to keep it out of the hands of other carriers.
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Slammer

Feb 1, 2015, 4:38 PM
There's more to than just spending money on the spectrum. There's also the obligation to spend additionally more on infrastructure and expansion variances through the towns and villages which are already maxed out on allowed towers and antennae.

Honestly, T-Mobile and Sprint can spend every penny they have and never be able to meet the control or the spending power of the big two.

It's time to forget about "Parent Companies" for financial solitude, especially Duetche Telekom.

I do suspect that the 600Mhz is where they will spend far more money. But, so will VZW and AT&T. Guess who will win again and again and again?

John B.
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