FCC Auction Finally over with 3 Big Winners!Posted February 2, 2015 by admin
AT&T, Verizon and Dish Network accounted for over 90% of total proceeds from the latest FCC Auction. The auction ending with $44.9 billion in proceeds.
AT&T was the biggest spender, with $18.2 billion in total potential winning bids. Verizon Wireless, came in with $10.4 billion in total winning bids and Dish Network with almost $10 billion.
We expect that AT&T will start to move on more build-outs including new towers soon. We received word today that AT&T has just now started to pony up for the back pay owed to contractors for 2014 work. This is another sign that AT&T will need these contractors for the next round of upgrades and build-outs. “This spectrum investment will be critical to AT&T staying ahead of customer demand and facilitate the next generation of mobile video entertainment,” said John Stankey, chief strategy officer at AT&T.
Verizon’s total bids came in below some estimates but this could be due to the 600MHz auction in coming in 2016. That spectrum is highly sought and Verizon Wireless could be keeping the guns loaded for that auction with both AT&T and Sprint looking to bid large. Sprint had already publicly stated it would bypass this auction and wait to bid on the 600MHz auction.
T-Mobile spend about $1.7 billion but it is thought that they also will be conserving cash for a run on the 2016 auction.
Lastly, we predicted the New York City spectrum block would push over $2.4 billion in early November, looks like we under estimated slightly with the winning bid in the $2.7 billion range.