The upcoming FCC spectrum auction may generate far lower bids than expected.
The commission’s early projections were $45 billion, however after counting early likely bidders, at least one Wall Street analyst thinks the number is at least $10 billion lower.
Last year’s wireless spectrum auction ginned up $45 billion in bids. However the auction of spectrum surrendered by television owners was originally projected to rake in between $45 billion to possibly $85 billion.
Motley Fool counts up participants like Verizon, AT&T and T-Mobile. Sprint has said it’s not participating, we’re reported.
Wall Street analysts were hoping a dark horse would emerge to drive up bids however that seems less likely as we get closer to opening bids — like Google or Charter Communications. Neither is taking part, according to the account.
Wells Fargo analyst Jennifer Fritzsche thinks $33 billion is now a more reasonable expectation.
There is a reason that this analyst organization is called “Fool”. There will be tremendous demand in the 600 MHz auction. Carriers need spectrum and there is no more in the pipeline.
Comments are closed.