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.