Incentive Auction Will Be Bigger than AWS-3, Padden Says
The TV incentive auction should end up being bigger than the AWS-3 auction, said Preston Padden, former executive director of the Expanding Opportunities for Broadcasters Coalition, in a Wednesday blog post. The AWS-3 auction had only 70 qualified bidders, with…
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pricing driven primarily by four bidders -- AT&T, Verizon, T-Mobile and Dish Network, he said. “Based on detailed auction simulations in the FCC record, the 600 MHz auction is likely to include a net of 90 or 100 MHz of paired spectrum -- twice as much as in AWS 3,” he said. “And, demand is greater in this auction. 104 bidders have filed in the 600 MHz auction -- more than the 70 in AWS 3.” Carriers have tried to downplay the value of the spectrum, Padden said. “But just a few weeks ago, Bill Smith, president of AT&T Network Operations, gave a speech in which he candidly admitted the continuing need for more spectrum,” said Padden (see 1602230042). The 600 MHz spectrum is also uniquely valuable, he said. “It travels long distances and goes through walls. Even advanced 5G systems will need low band spectrum for signaling channels.”