The FCC Auction 97 has already passed $31 Billion.Posted November 21, 2014 by admin
The FCC Round 24 of the “Auction 97” has now been pushed passed $31 Billion. The reserve price set by the FCC was $10.6 Billion before the auction began. It is no surprise that the largest MSA’s are getting the largest bids. See below from a chart from RCR Wireless site.
Currently the New York City are block is now over $1.8 Billion and it would not be surprising if this number pushed over the $2.4B level by the end of the bidding.
Remember that coverage is no longer an issue but rather capacity is the challenge for the wireless carriers. I would expect Verizon to be the biggest bidder in this space once this all shakes out. Mobile data is driving these prices with carriers finally targeting the ability to deliver content not just a coverage. Some of the carriers also have entered into license exchange and lease agreement as well as an exchange of spectrum letter agreement. It could be that some of this bidding could be used for “trading purposes” later on.
Dish Network has signed agreements with Northstar Wireless and SNR Wireless for a joint-bidding agreements.
The FCC does not release the names of the bidders during the auction and will announce once the bidding is closed. This should be interesting to see who stepped up.