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ComicalMoodyDan · 02-17-2005, 11:06 AM

Auction 58 May End Era
By Mark Rockwell
February 16, 2005
news@2 direct

WASHINGTON--The FCC's recently concluded Auction 58 could end an era of auctioning rules at the agency.

The auction, which brought in about $2.25 billion in bidding, officially ended Tuesday. With a total of 91 rounds and 242 licenses up for sale, the auction's total fell a bit behind expectations, which had ranged up to $3 billion before it began.

The licenses were primarily for secondary markets and not in the prime urban markets that big national carriers are willing to shell out huge amounts on, says Rudy Baca, vice president and global strategist at Precursor Group. Verizon Wireless did manage to bid a total of almost $400 million for a number of licenses in secondary markets, such as St. Louis, Mo.

The company, however, like most of the other large national carriers, was required to bid through smaller companies called "designated entities." The FCC created the DEs, as they're called, to help smaller companies compete with deep-pocketed national carriers. The DEs have become stalking horses for the larger carriers, however, and have complicated the bidding process, analysts say.

Baca predicts this is the last auction in which the commission will use the DE designation as the FCC moves toward allowing larger carriers to bid as themselves in future auctions. Carriers see the coming auction of a 90 MHz block of transferred government spectrum in 2006 as their big chance to obtain licenses in larger metropolitan markets, he says. That auction will see licenses in 1710-1755 MHz and 2110-2155 MHz up for sale.

Auction 58 May End Era

agentHibby · 02-17-2005, 11:20 AM

I though it was a good idea for DE's. I guess I was wrong.

They think AWS will be auctioned off in 2006.

agentHibby · 02-17-2005, 11:24 AM

I should say that some licenses went very cheap in my opinon compared to previous PCS auctions. Los Angeles I thought would go for at least 500-900 million. And the auction would end up at 4-5 billion in total. Guess I was wrong on that one.

DanPFW · 02-18-2005, 8:45 AM

Anybody know what happens to the licenses that weren't bid on? Are they just up for sale to anyone now?

Dan

Matt · 02-18-2005, 11:03 AM

I assumed that they all would get at least one bid; is that not the case?

02-17-2005, 11:06 AM	#1
ComicalMoodyDan Join Date: Dec 2001 Location: Kingsport, TN Posts: 6,071 Phone(s): Samsung Gravity 2, Samsung Smooth Provider(s): T-Mobile, Verizon Wireless Devices: T-Mobile @Home Thanks: 0 Thanked 20 Times in 15 Posts	Auction 58 May End Era Auction 58 May End Era By Mark Rockwell February 16, 2005 news@2 direct WASHINGTON--The FCC's recently concluded Auction 58 could end an era of auctioning rules at the agency. The auction, which brought in about $2.25 billion in bidding, officially ended Tuesday. With a total of 91 rounds and 242 licenses up for sale, the auction's total fell a bit behind expectations, which had ranged up to $3 billion before it began. The licenses were primarily for secondary markets and not in the prime urban markets that big national carriers are willing to shell out huge amounts on, says Rudy Baca, vice president and global strategist at Precursor Group. Verizon Wireless did manage to bid a total of almost $400 million for a number of licenses in secondary markets, such as St. Louis, Mo. The company, however, like most of the other large national carriers, was required to bid through smaller companies called "designated entities." The FCC created the DEs, as they're called, to help smaller companies compete with deep-pocketed national carriers. The DEs have become stalking horses for the larger carriers, however, and have complicated the bidding process, analysts say. Baca predicts this is the last auction in which the commission will use the DE designation as the FCC moves toward allowing larger carriers to bid as themselves in future auctions. Carriers see the coming auction of a 90 MHz block of transferred government spectrum in 2006 as their big chance to obtain licenses in larger metropolitan markets, he says. That auction will see licenses in 1710-1755 MHz and 2110-2155 MHz up for sale. Auction 58 May End Era

02-17-2005, 11:20 AM	#2
agentHibby Iowa Cellular Guru Join Date: Sep 2003 Location: SID 150 or 1214 Posts: 3,472 Phone(s): Nokia 6256i, (retired) Motorola V120c, Timeport 270c, Nokia 252 (Airtouch) Provider(s): Verizon Wireless Thanks: 0 Thanked 0 Times in 0 Posts	Re: Auction 58 May End Era I though it was a good idea for DE's. I guess I was wrong. They think AWS will be auctioned off in 2006. __________________ If Verizon can buy out their affiliates they would be better off.

02-17-2005, 11:24 AM	#3
agentHibby Iowa Cellular Guru Join Date: Sep 2003 Location: SID 150 or 1214 Posts: 3,472 Phone(s): Nokia 6256i, (retired) Motorola V120c, Timeport 270c, Nokia 252 (Airtouch) Provider(s): Verizon Wireless Thanks: 0 Thanked 0 Times in 0 Posts	Re: Auction 58 May End Era I should say that some licenses went very cheap in my opinon compared to previous PCS auctions. Los Angeles I thought would go for at least 500-900 million. And the auction would end up at 4-5 billion in total. Guess I was wrong on that one. __________________ If Verizon can buy out their affiliates they would be better off.

02-18-2005, 8:45 AM	#4
DanPFW Junior Member Join Date: Feb 2004 Location: Minnesota Posts: 215 Phone(s): MotoK1m Provider(s): CDMA Thanks: 0 Thanked 0 Times in 0 Posts Images: 9	Re: Auction 58 May End Era Anybody know what happens to the licenses that weren't bid on? Are they just up for sale to anyone now? Dan

02-18-2005, 11:03 AM	#5
Matt Busy chasing my son Join Date: Oct 2001 Location: Lititz, Pa. Posts: 4,876 Phone(s): Motorola Cliq, BlackBerry 8820 Provider(s): T-Mobile Thanks: 4 Thanked 5 Times in 5 Posts Images: 2	Re: Auction 58 May End Era I assumed that they all would get at least one bid; is that not the case? __________________ Join the T-Mobile Group Forum (or any other!) ...a/k/a cheerioboy26 elsewhere on the net....

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