Thursday, January 24, 2008

Super Thursday: Let the Spectrum Auctions Begin!

I've written frequently in the last couple of weeks here about the Federal Communications Commission (FCC) 700 MHz band auction that officially kicked off today. USA Today has published an interesting article titled Google could cause a stir in FCC's airwaves auction and, in the article, some of the leading bidders and their likely strategies are listed.

Let's take a quick look at some of the major bidders (in alphabetical order) and their expected bidding strategies.
For additional detail be sure to read the USA Today Article.

AT&T already has more spectrum than any other carrier so bidding on the 700 MHz band will be used for further build-out. Many experts are speculating AT&T will focus primarily on the D-Block public-safety spectrum.

Cablevision, Cox, Advance/Newhouse, Bresnan
These cable companies are interested in spectrum to provide wireless services and compete with the large providers. Most experts believe they will be bidding on A-Block regional licenses in their service areas.

EchoStar is a satellite TV provider that is interested in using spectrum to provide wireless broadband access to its customers. Most experts do not feel EchoStar has the money to compete with companies like Google, At&T and Verizon in the auction.

Google is the heavyweight here. The company wants to further expand into the cellular smartphone market and has the money to compete with the big providers. The company is expected to bid the $4.6 Billion minimum for the C-Block spectrum in the U.S.

Like the cable companies (Cablevision, Cox, etc), these regional wireless companies will likely be bidding on A-Block regional licenses in their service areas. Experts also are speculating Alltel will bid on the public safety D-Block spectrum.

Paul Allen's (co-founder of Microsoft with Bill Gates) investment company, Vulcan, already owns spectrum in Washington and Oregon.Vulcan may be bidding on some of the C-Block regional licenses or smaller A or B-Block regional licenses.

The California based wireless manufacturer is looking for spectrum for its MediaFlo smartphone video service. Qualcomm will likely be bidding on E-Block regional licenses.

Verizon will likely be bidding big on U.S. C-Block spectrum with plans to open their network to any (hardware and software) devices.

If you want to stay updated - the FCC Auction 73: 700 MHz Auction Summary page lists, among other things, results of the auction after each round.

The auction will likely last a couple of months so we won't know the winners until then. We should start to see products from the winning bidders that use the spectrum sometime next year.

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