ABI Looks At 700 MHz Bidding

Even the FCC underestimated the demand for 700 MHz. Originally expected to raise between $10 billion and $15 billion, total current bids exceed $18.9 billion. Bidding on the sought-after C block also surpasses the FCC requirements ($4.6 billion) and now has a PWB (Provisional Winning Bid) of $4.7 billion. ABI Research notes that demand for 700 MHz is so great, not even the pending recession impacts the bidding process. This auction may be the last opportunity for new participants to gain ground in the wireless realm, which is dominated by incumbent carriers. Moreover, incumbent operators absolutely want to strengthen 4G deployments; and 700 MHz will improve rural and in-building coverage at a lower cost than existing frequencies. One surprise is the nationwide D block, set aside by the FCC for public safety. Frontline Wireless—the expected front-runner—was disqualified due to its inability to pay the minimum bid. And there has been only one bid, which failed to meet the reserve bid price of $519 million. The D block price is set at $1.3 billion. ABI Research’s recent report, Global Wireless Spectrum Issues: Market Opportunities and Implications, explores all major spectrum initiatives, highlighting implications for vendors, regulators, and operators. It addresses spectrum trading, mobile liberalization, technology neutrality, and the latest developments in the satellite bands, and covers globally harmonized bands for WiMAX as well.