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Verizon Might Skip 600MHz Incentive Auction

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Jarahawk

Jul 21, 2015, 1:49 PM
No one believes this nonsense. Verizon is going to bid. No question about it. Even if they do not need the spectrum, keep in mind that this has never stopped them from bidding in past auctions despite not needing the spectrum. Why? A: It will drive up the cost of the spectrum for competitors. B. They do not want a new competitor to enter the fray. They did this with the cable companies in the past and there is a reason why they are crying about Dish Network using puppets to bid in auctions. Dish was wrong of course, but Verizon (and AT&T) simply do not want to see a new competitor, not do they want T-mobile or Sprint to increase their capacity. Verizon will bid and so will AT&T, despite neither actually needing the spectrum.
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Slammer

Jul 21, 2015, 6:09 PM
Actually, this move is a threat. What drives up the cost is having rich pockets involved with the auction. I'm taking a guess that VZW is being more vocal at this point vs AT&T about this for two reasons:

1) I believe AT&T is thinking the same as VZW but is keeping quiet as it tries to close the acquisition of DirecTv. It is not going to step on the foot of the FCC until then.

2) The goal for the broadcasting industry is to get as much money from this auction as possible. If the two largest carriers sit out of the auction, the sales of spectrum will not be nearly as successful due to the limited funds of the competition. I believe this is an attempt to sway the rules so limits are not placed on the largest carriers. They are not happy ...
(continues)
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Jarahawk

Jul 21, 2015, 8:24 PM
It's an empty threat. If we know Verizon is full of it, better believe the people who deal with them regularly know it.
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