07 September 2006

Spectrum Auction (No. 66) update

Earlier, I had discussed the spectrum auction currently underway in the US. In case you were wondering how it was going (as I was), this article in BusinessWeek has some answers for you. Not surprisingly, T-Mobile is one of the biggest bidders. They have long been spectrum constrained and this added capacity should help them expand their network. What is surprising is Verizon's activity. Apparently, they are girding up for providing more high speed services. The BW article also reports that the prices are attractive. Do you think that this accounts for the surprises in activity? How do you think this will change the competitive dynamics in the industry? Do you expect another wave of consolidation after the auction concludes?

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1 comment:

Pat said...

As reported, the bidding price is somewhat bargain. But the question is what will winning bidder do with this enormous resource? Mobile TV? I am sure that more and more bandwidth will be needed for applications in the future but isn’t technology advancing as well? In the next 10 years, one frequency band could possibly support lots of applications than today. I am not sure if there will be a big deal on any consolidation but I am sure that the winning bidder can, at least, prevent other people from expanding their networks and services if and only if they win the bid.