Wells Fargo: AT&T to spend $10 billion on 600MHz FCC auction, topping T-Mobile's $8 billion
posted by Alan F. / Nov 25, 2015, 4:33 PM
The FCC did agree to hold aside spectrum reserves to be offered exclusively to carriers that own less than 45% of the airwaves in a particular market. Amazingly, this rule will still allow the nation's largest carrier, Verizon, to bid on the spectrum reserves in as many as 12 markets. T-Mobile has requested that the FCC block Big Red from taking advantage of this loophole.
Even scarier to T-Mobile is the idea that its worst fears might come true. According to analysts at Wells Fargo, AT&T is planning on out-spending T-Mobile during the auction, spending as much as $10 billion on a 2x10 MHz block of spectrum that offers nationwide capability. T-Mobile is expected to produce bids as high as $8 billion, with Verizon looking to spend $5 billion.
Wells Fargo expects the 600MHz auction to raise $30 billion to $35 billion, about 33% shy of the $45 billion raised by the FCC's last AWS-3 auction. AT&T led the pack, spending $18.2 billion for those airwaves. Sprint has decided to pull out of this auction, saying it already has enough spectrum to cover its needs.
Posts: 4359; Member since: Sep 01, 2012
If sprint has enough spectrum why don't they use it? I wonder if this spectrum acquisition will be fully supported by Deutsche Telekom.
posted on Nov 25, 2015, 5:25 PM 0
Posts: 1091; Member since: Feb 28, 2015
either way 8 billion should buy a good % and improve their network, No?
posted on Nov 25, 2015, 5:57 PM 1
Posts: 981; Member since: Jul 31, 2012
There are lots of markets where Tmobile will get plenty of spectrum. It is set aside for small carriers and where it isn't they can bid bigger since they won't have competition in all of the markets. I'm sure they can spend all their money either way.
posted on Nov 25, 2015, 6:34 PM 0
Posts: 692; Member since: Oct 08, 2011
Well Sprint can't play because they have dumped billions into buying Nextell, Virgin Mobile and other poor investments. Oh, almost forgot about the almost 500 Billion now for more than a decade of Sponsoring NASCAR.
posted on Nov 25, 2015, 7:05 PM 0
Posts: 174; Member since: Nov 19, 2015
At&t and Verizon should not be allowed the 600mhz. If they do they will be like rotten Apple.
posted on Nov 25, 2015, 9:04 PM 1
Posts: 832; Member since: Jun 23, 2012
No, not really, they are just smarter and invested wisely from the beggining. Why should they get punished for being smarter than the others? If others made more money in the same business, why should they get punished? I understand If only area specific carriers got to bed, that's great, but T-Mobile wants the perks of a big carrier and little carrier.
posted on Nov 25, 2015, 9:49 PM 0
Posts: 1485; Member since: Mar 18, 2012
Because then Verizon and ATT will dominate the market and raise their prices to sky high. Competition is good and up until recently Verizon really took advantage of it's monopoly because it could. I want T-Mobile to get it and drive down prices for everyone. We need better and better plans too.
posted on Nov 25, 2015, 10:29 PM 0
Posts: 832; Member since: Jun 23, 2012
VZW followed Att with price hikes. From activation fees to then adding upgrade fees. VZW was never activelty raising prices first. Business models change over time, and now plans are pretty similar now.
posted on Nov 26, 2015, 2:43 AM 0
Posts: 169; Member since: Jul 25, 2013
I'm so glad that sprint is last, it servers them well for making such crap decisions like buying Nextel just to kill the company off, the should have just left Nextel the way it was, I know so many people who use to own Nextel phones just for the walkies no phone out today can work and sound as nice as the Motorola phone speakers did and I just don't know why? The old Motorola phones use to sound so loud and clear! Why can't any phones today sound that way?
posted on Nov 25, 2015, 11:21 PM 0
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