{"id":26838,"date":"2017-04-14T12:23:11","date_gmt":"2017-04-14T12:23:11","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=26838"},"modified":"2017-04-14T12:24:02","modified_gmt":"2017-04-14T12:24:02","slug":"t-mobile-dish-bid-combined-14-billion-u-s-airwaves-auction","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/t-mobile-dish-bid-combined-14-billion-u-s-airwaves-auction.html","title":{"rendered":"T-Mobile, Dish bid combined $14 billion in U.S. airwaves auction"},"content":{"rendered":"

\n\tT-Mobile, Dish bid combined $14 billion in U.S. airwaves auction<\/span><\/span><\/strong><\/span>
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\n\tT-Mobile, Dish bid combined $14 billion in U.S. airwaves auction:- T-Mobile US Inc (TMUS.O) bid $8 billion and Dish Network Corp (DISH.O) $6.2 billion to win the bulk of broadcast airwaves spectrum for sale in a government auction, the U.S. Federal Communications Commission said on Thursday.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe two carriers accounted for most of the $19.8 billion in winning bids, the FCC said. Comcast Corp (CMCSA.O) agreed to acquire $1.7 billion in spectrum, AT&T Inc (T.N) bid $910 million and investment firm Columbia Capital offered $1 billion.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe FCC said 175 broadcast stations were selling airwaves to 50 wireless and other telecommunications companies. Companies plan to use the spectrum to build new networks or improve existing coverage.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe spectrum auction's end is widely expected to kick off a wave of deal-making in the telecom industry. Until now, companies participating in the auction have been restrained by a quiet period, but that will end after April 27, when down payments are due from auction winners.<\/span><\/span><\/span>\n<\/p>\n

\n\tT-Mobile said its $8 billion winning bid would enable it "to compete in every single corner of he country." The company, controlled by Deutsche Telekom AG (DTEGn.DE), said the investment will quadruple its low-band holdings.<\/span><\/span><\/span>\n<\/p>\n

\n\tVerizon Communications Inc (VZ.N) and Sprint Corp (S.N) opted not to bid.<\/span><\/span><\/span>\n<\/p>\n

\n\t“What is most interesting to us was (Verizon) was nowhere to be found,” Jennifer Fritzsche, an analyst at Wells Fargo, said in a research note, adding that "we continue to believe Verizon’s interests lay in the higher band spectrum assets."<\/span><\/span><\/span>\n<\/p>\n

\n\tCraig Moffett, an analyst at MoffettNathanson, said in an email that there were three surprises in the results: “Comcast bought less than expected, Dish Network bought more, and Verizon bought nothing at all."<\/span><\/span><\/span>\n<\/p>\n

\n\tDish shares fell 2.5 percent to close at $62.38. Comcast, Verizon and AT&T were down less than 1 percent at market close while T-Mobile rose marginally.<\/span><\/span><\/span>\n<\/p>\n

\n\tMoffett said Dish’s spectrum spending underscored "the growing importance of the company’s valuation as it relates to their spectrum holdings."<\/span><\/span><\/span>\n<\/p>\n

\n\tComcast sold spectrum from three of its NBCUniversal owned stations in New York, Philadelphia and Chicago for $481.6 million.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe FCC also announced new channel assignments for 957 non-winning stations that must change channels to clear the new wireless airwaves for use.<\/span><\/span><\/span>\n<\/p>\n

\n\tOf the $19.8 billion bid, more than $7 billion will go to reduce the U.S. deficit and $10.05 billion to broadcasters relinquishing spectrum. Up to $1.75 billion will go to broadcasters that incur costs in changing channels.<\/span><\/span><\/span>\n<\/p>\n

\n\tSellers had initially sought $86.4 billion for 126 megahertz. Many analysts had expected broadcasters to earn more and sell more spectrum.<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-usa-wireless-auction-idUSKBN17F2CJ<\/span><\/span><\/span><\/p>\n

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