Top Tiers pay through the nose, bottom feeders hide in the shadows, while US Treasury to gain $41 Billion from AWS-3 auction

 AWS-3 had some aggressive bidding – perhaps just to run up the price and extract revenge for previous M&A grievances, but who knows.  Below is a view of the provisional bids shortly before the auction closed.  As expected, the 2x10 MHz spectrum carries about a 10% premium over 2x5 MHz spectrum.  1x10 TD-LTE is worth less, and there are some real bottom feeders for the 1x5 MHz TD-LTE.   Given the low valuation placed on the 1x5 MHz TD spectrum, one wonders why the FCC didn’t bundle that to make a 1x15 MHz block, as that would certainly be worth more than the current yields. 


It will be interesting to see the nuggets mined once the result is made public, and it should come as no surprise to see that Verizon Wireless and AT&T get what they wanted – though they surely paid more than anticipated.

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