700MHz auction slows

Stephen Withers
Monday, 11 February 2008 08:26

IT Policy - Regulation

Round 51 of bidding in the US FCC's auction of 700MHz spectrum showed relatively little activity with the aggregate value of bids rising just 0.11 percent to $US19.2 billion.

Multiple bids were received for just 12 licences, most of which were in the tens or hundreds of thousands of dollars. The exceptions were the E block licence for San Antonio, Texas, where bidding has exceeded $US2.7 million, and the A block licence for Asheville, North Carolina, which has just passed $US1 million.

The highest-priced licence to receive a bid during round 51 was the E block allocation covering New York city and neighbouring areas. The current bid is $US220 million. Similarly, a $US117 million round 51 bid was received for the E block licence for the Los Angeles area.

The A and E blocks are divided unto 176 'economic area' licences and the spectrum being offered consists of two 6MHz bands. The B block will provide the winning bidder with similar bandwidth, but is being offered in 734 licences corresponding to cellular market areas.

The C block provides two 11MHz bands, split into 12 geographic areas. Bids are also being accepted for packages consisting of the 50 states, US Pacific territories, and territories in the Atlantic. Licences will be issued in whichever combination of individual areas and packages yields the highest aggregate bid. Bidding has already reached the threshold set by the FCC for the inclusion of an open access condition which will require the winner to allow subscribers to use any compatible devices and services.