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FCC's 2016 Reverse Auction Sees Opening Bids Set

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Raise Prices, Lock Out Small Carriers

rwalford79

Feb 6, 2015, 2:16 PM
Okay, so there are not many smaller carriers, but raising the prices on the spectrum, locks out, or severely limits smaller companies that need spectrum, or is hoping to get a discount on them.

Way to go FCC!
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vikes0115

Feb 6, 2015, 3:15 PM
Not exactly, this isn't the purchase price for the wireless companies. That will be determined by auction and as usual the big carrier will bid the price up which will shut out the small carriers from being able to purchase spectrum (especially this highly desirable spectrum).

What is being raised is the starting price offered as an incentive to the TV companies to agree to sell all or parts of their frequency allotments. The government will then keep dropping the offer price, causing fewer broadcasters to be willing to sell at that lower price, until only the amount of spectrum they want to have to auction off the wireless companies. At that point the government will commit to buy the spectrum and will start a traditional auction to r...
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rwalford79

Feb 7, 2015, 11:21 AM
Thanks for clearing that up for me.

I was not sure how it wall worked, and this in-depth post made it a bit more clear for me.

Thanks again!
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