The U.S. government has just ended its auction for licenses in the 600MHz spectrum. The event has actually changed the domination of the band from TV broadcasters to mobile players. T-Mobile USA won by far the largest portfolio of assets. Other influential players in the 600MHz incentive auction were Dish Network Corp and Comcast Corp.
T-Mobile, Dish, and Comcast Were Most Active in the Incentive Auction
On Thursday, the U.S. government made public the results of the 600MHz incentive auction. The report designated T-Mobile as the biggest winner of the event. The telecommunications company is going to pay a total of $8 billion for its acquisitions. T-Mobile was followed by far by Dish Network Corp with a portfolio valued at $6.2 billion. Comcast Corp filled the third position with an expenditure of $1.7 billion.
On a surprising side note, the biggest mobile providers in America, namely AT&T Inc and Verizon Communications Inc, played more of a passive role in this incentive auction. The event started to unfold last year under the supervision of the Federal Communications Commission. While AT&T spent a modest sum of $1 billion on licenses, Verizon did not participate at all.
Verizon and AT&T Focus More on Technology Development and Content
Verizon absence together with the participation of companies that are not currently involved in the industry of cellular networks are signs of a fluid telecommunications medium. Verizon has openly delegitimized the utility of the spectrum of wireless airwaves. The rationalization behind this statement is an unjust rate between potential and a too high price. This explains the Verizon absence and its choice to focus on technology that enhances coverage.
On the other hand, AT&T invested in another rich source of airwaves. The company tapped into a governmental contract that offers it the permit to create a wireless network of its own. This clearance is intended for public safety. AT&T is also considering extending its services to quality content. The company has already proposed Time Warner Inc a buying offer of $85 billion.
The 600MHz incentive auction was performed at the request of the U.S. government. The authority created an opportunity for TV broadcasters to sell out their airwaves. However, the government had the advantage of proposing the opening prices. As a result of the bidding, a total of 175 TV stations are to receive funds valued at $10 billion. Some of them are 21st Century Fox, Sinclair Broadcast Group Inc, and WWTO-TV.
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