Sell-off: US reaps $41 billion in wireless spectrum auction

Sale comes amid high demand for devices that connect to internet


Afp January 31, 2015
Offers: $18.2b is the value of bids won by AT&T, Verizon bid $10.4 billion and T-Mobile bid successfully for some $1.8 billion. STOCK IMAGE

WASHINGTON: The US government is getting more than $41 billion from an auction of wireless spectrum, highlighting surging demand for new devices that connect to the internet, officials said on Friday.

The Federal Communications Commission, which revised down its estimate from $45 billion, said the auction that ended on Thursday raised the highest amount ever for this type of sale.

The auction comes amid huge demand for spectrum to meet the needs of people using smartphones, tablets and other devices that connect to the internet, such as cars, refrigerators and wearable gadgets.

The move adds 65 megahertz of spectrum to “improve wireless connectivity across the country and accelerate the mobile revolution that is driving economic growth and improving the lives of the American people,” FCC Chairman Tom Wheeler said.

“The results of this auction confirm the strong market demand for more spectrum.”

In a document listing the winning bidders, the FCC said AT&T won bids totalling $18.2 billion and Verizon $10.4 billion. T-Mobile bid successfully for some $1.8 billion.

AT&T said the new spectrum will allow its wireless service to cover 96% of the US population with “high-value contiguous” spectrum.

“Growth in our customers’ mobile data usage continues to explode, driven by mobile video traffic,” said John Stankey, chief strategy officer at AT&T.

“This spectrum investment will be critical to AT&T staying ahead of customer demand and facilitate the next generation of mobile video entertainment.”

Satellite broadcaster Dish Network, which placed bids through affiliates, won nearly $10 billion in bids.

The FCC said $20 billion from the auction would go to reduce the federal deficit and additional amounts would fund broadband public safety network and emergency communications.

The auction “is only the first step to unlock more mobile investment and benefits,” CTIA Wireless Association president Meredith Attwell Bake said.

Published in The Express Tribune, February 1st, 2015.

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COMMENTS (2)

woody | 9 years ago | Reply

Next time you decide to auction wireless spectrum maybe you should call the American's? No muss, no fuss, no negotiations with buyers, no false starts, no multi year delay ....just a straightforward sale that generates funds that helps taxpayers.

SirStephenH | 9 years ago | Reply

"The FCC said $20 billion from the auction would go to reduce the federal deficit and additional amounts would fund broadband public safety network and emergency communications."

This really wouldn't help the deficit because this is only a one time thing. Sure it would lower the deficit FOR ONE YEAR but it's the DEBT that it will have the more serious effect on.

Deficit: The year to year difference between tax money coming in and payments going out.

Debt: Total money owed to creditors.

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