Incentive Auction Fails to Attract Big Spenders
Aug 31, 2016, 5:41 AM by Eric M. Zeman
The FCC's 600MHz incentive auction is proceeding slowly and may need to be reset. After 27 rounds of bidding, the total amount bid has reached only $23 billion, far short of the $88.4 billion clearing cost set during the reverse part of the auction earlier this year. The FCC will likely end bidding on the licenses that attracted the most interest and then go back to the television broadcasters to reset the clearing costs for the remaining licenses to drive demand. Some analysts believe the auction made need to reset prices several times before it can come to an end. The 600MHz airwaves are the last low-band spectrum that will be made available to wireless carriers. AT&T, T-Mobile, and Verizon Wireless are participating, as is Dish Networks and myriad other entities. The spectrum is being sold by television broadcasters, many of which have had the spectrum for decades.
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