Wireless Fever Cools Before FCC Auction
The U.S. government soon will reveal which companies want to bid on airwaves in the next multibillion-dollar spectrum auction. Who’s not on the list, due out as soon as this week, could be as significant as who is. Not only has cash-tight Sprint Corp. declined to join, but rich outsiders like Google are also sitting this one out. If no surprise bidders emerge to drive up prices, carriers may be able to grab valuable wireless space at a bargain after the record $41 billion they paid in an auction last year.
This article was originally posted on bloomberg.com
45 billion. 33 billion. And now 15 billion? If it gets any lower there won’t be an auction since the law stipulates that the auction must make enough to pay for itself. Station owners know what their stations are worth and if the auction buyout is too low, they likely won’t sell. But, in the end, Wheeler will still proclaim the auction a success. On a different note: Utah legislators have passed a resolution to be signed by the governor, urging the POTUS and the FCC to protect all of the LPTV and translator stations in the state. Other states may follow.
So now Tom Wheeler is saying that he will ask Congress for mo’ money if the 1.75 billion isn’t enough and that the FCC is flexible on the 39-month repacking deadline. Man, this guy is really desperate to make this turkey of an auction fly.
If auction numbers keep falling aren’t all broadcasters better off not participating in the auction and waiting for post-auction to explore opportunities?
While Sprint may not be participating their parent company Softbank is.