Auction Bids Could Be Low Without Dark Horse

By on Mar, 14 2016 with Comment 1

crystal-ballThe 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.

About The Author: Leslie Stimson has been a reporter for 35+ years, starting in radio news. She’s spent the last 20 years reporting for radio trades.

  1. Preston Padden Says:

    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.