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story category T-Mobile, Verizon Win Big in Spectrum Auction
Auction set to net some $13.9 billion
(old news - 02:28PM Friday Sep 15 2006)
tags: fcc · business · wireless
Reuters reports that the FCC AWS spectrum auction is winding down. The big winner was T-Mobile, who provisionally won 119 licenses in major markets like New York City and Chicago with offers of almost $4.2 billion after 136 rounds. Behind them was Verizon, who doled out $2.81 billion for 13 licenses in the northeast and southeast United States. The auction thus far has grossed close to $13.9 billion.

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Forums » T-Mobile, Verizon Win Big in Spectrum Auction
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snipper_cr

join:2002-01-22
Wheaton, IL
clubs:

Result?

With gaining these new frequencies, what will it entail? Highier call volume, new services (video? I know most people dont use it), or cheaper prices?
--
Serenity Day - June 23rd 2006. You Can't Stop the Signal

ropeguru
Premium
join:2001-01-25
Hollywood, FL
clubs:

Re: Result?

said by snipper_cr See Profile :

With gaining these new frequencies, what will it entail? Highier call volume, new services (video? I know most people dont use it), or cheaper prices?
More stronghold by the big few and higher prices, more than likely.
--
FWD#: 223611

kapil
The Kapil

join:2000-04-26
Chicago, IL

$13.9B

How many brownies in Iraq and Afghanistan can we kill with that money?

Matt
Running Free
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..
·Corporate Colocation

Re: $13.9B

said by kapil See Profile :

How many brownies in Iraq and Afghanistan can we kill with that money?
I think that will pay up until about lunch, or perhaps only 2nd breakfast.
--
I have tried to see things from your point of view, but no matter how hard I try, or what I do, I just can't get my head that far up my ass.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
clubs:
·Verizon Online DSL

Re: $13.9B

said by Matt See Profile :

said by kapil See Profile :

How many brownies in Iraq and Afghanistan can we kill with that money?
I think that will pay up until about lunch, or perhaps only 2nd breakfast.
That would pay for about 59 days, almost three months. That doesn't count the cost for the men that will need life time care because of broken bodies. Of course they will be screwed like all veterans.

Matt
Running Free
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..
·Corporate Colocation

Re: $13.9B

I thought I heard that they were spending 80B a day?

»www.usatoday.com/news/politicsel···ck_x.htm

Ahhh, not sure where I got the 80B a day from then.
--
I have tried to see things from your point of view, but no matter how hard I try, or what I do, I just can't get my head that far up my ass.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
clubs:
·Verizon Online DSL

Re: $13.9B

said by Matt See Profile :

I thought I heard that they were spending 80B a day?

»www.usatoday.com/news/politicsel···ck_x.htm

Ahhh, not sure where I got the 80B a day from then.
That is only $64 Billion USD a year, I thought it was closer to $100 Billion USD. Hell we can stay another couple of years at that price.

DrTCP
Yours truly
Premium,ExMod 1999-04
join:1999-11-09
Round Rock, TX

Good for T-Mobile (and its customers)

They should be able to increase coverage and offer data services so they will bring better competition to Cingular, Verizon and Sprint-Nextel. T-Mobile was particularly lacking in data.

n2jtx

join:2001-01-13
Glen Head, NY
·Optimum Online


edit:
September 15th, @05:30PM

Re: Good for T-Mobile (and its customers)

said by DrTCP See Profile :

They should be able to increase coverage and offer data services so they will bring better competition to Cingular, Verizon and Sprint-Nextel. T-Mobile was particularly lacking in data.
Not very likely. The new 1700/2100MHz bands will not offer any improvement in propagation versus the 1900MHz they are using now. Had it been for spectrum in the 700MHz or 850MHz bands then it would have made a difference. What this will do is give them more bandwidth to roll out more advanced 3G services. However, any holes in their coverage now will still be there with these new frequencies unless they build out more cell sites.
--
I support the right to keep and arm bears.

Vig
Thread-safe since 1997
Premium
join:2004-03-23
San Diego, CA
·RoadRunner Cable

vastly different per license prices

The article doesn't get specific, but Verizon's areas must be major cash cows compared to most of the ones T-Mobile picked up. Verizon spent an average of $215M per license compared to T-Mobile's $35M per.
--
Visit the land of the never-setting sun

roamer1
sticking it out at you

join:2001-03-24
Atlanta, GA
clubs:
·VoicePulse Connect
·Teliax VOIP
·Speed Factory
·Cingular Wireless


edit:
September 15th, @03:50PM

Re: vastly different per license prices

said by Vig See Profile :

The article doesn't get specific, but Verizon's areas must be major cash cows compared to most of the ones T-Mobile picked up. Verizon spent an average of $215M per license compared to T-Mobile's $35M per.
Per-license comparisons are meaningless, as some of the licenses cover very large regions of the country (REA), while others cover a single metro area (MSA) or a few rural counties (RSA). VZW has mainly been going for REA licenses, while T-Mobile has been concentrating on MSA/RSA licenses (and a few REAs here and there.)

-SC
--
"it seems like all you ever buy is Abercrombie and cell phones" --a friend

wwdubbia

join:2002-06-03
Clinton, NY

Re: vastly different per license prices

Verizon will buy T-Mobile eventually.

You heard it here first.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
clubs:
·Verizon Online DSL

Re: vastly different per license prices

said by wwdubbia See Profile :

Verizon will buy T-Mobile eventually.

You heard it here first.
That is where the money is but Verizon better run FIOS to my house first.

joako
Premium
join:2000-09-07
Gainesville, FL

said by wwdubbia See Profile :

Verizon will buy T-Mobile eventually.

You heard it here first.
I think they'll pick up AllTel before T-Mobile.

Remember who owns T-Mobile.... DT is a large multi-national company.
--
Am Heimcomputer sitz' ich hier, und programmier' die Zukunft mir
jervin123

join:2005-04-14
Philadelphia, PA

Re: vastly different per license prices

Verizon will come back and say there a Multi national company to that comment... Wow you operate a data center in the Netherlands. That Danger INC. (Operator of the Sidekick/Hiptop data service for Sidekicks and Hipotops. DT would be more trusted in my eyes the Verizon.

kapil
The Kapil

join:2000-04-26
Chicago, IL

Highly doubt it. Verizon is CDMA and T-Mo is GSM. A more likely scenario is that VZW will buy Alltell and then try to buy-out co-owner Vodaphone. Vodaphone is then free to reinvest in the US which it will probably do by buying T-MO or partnering with T-Mo's German parent.

Unregistered User

@69.244.x.x

Won't happen.

1. VZW is CDMA, while T-Mobile is GSM. Converting all those sites would cost a fortune.

2. VZW already has licenses in most of the places that T-Mobile has licenses.

3. You're assuming DT will sell.

As others have said, VZW would be more likely to buy Alltel, assuming they want to be bought and not grow into a national carrier in their own right. VZW roams on Alltel in many areas, but that doesn't mean VZW wants Alltel. It's possible that it costs less to pay for roaming than to maintain a larger network.

If you want my prediction, I think you'll see more consolidation among the smaller carriers. I could see Cricket and MetroPCS merging at some point, or maybe Alltel will make a play for one or both of them. If Alltel decides they want to be a national player, they need licenses in more cities, and grabbing those two carriers would help them achieve that. Add in the fact that all three carriers are CDMA would make network integration much easier.

PGHammer

join:2003-06-09
Accokeek, MD
clubs:
·Comcast

Re: vastly different per license prices

VZW is a national carrier in their own right *today*. If you haven't taken a good look at the VZW calling area, I seriously suggest you do so: in fact, there is less reason to incur roaming charges with VZW as your carrier than there is with *any* other carrier (and yes, that includes Nextel). Alltel is still a largely regional carrier (and primarily a Southern carrier) and has no real expansion room *without* running head-on into the concrete wall that is VZW. VZW, on the other hand, *is* expanding into the larger metropolitan areas in Alltel's territory, so Alltel will either have to put up or sell out.

When it gets down to cases, VZW is the largest non-GSM cellular provider in the US (Vodaphone plc's reluctance to sell is because the US, like it or not, is still considered important, not necessarily because VZ hasn''t waved enough money under their noses).

Mobile Guru

@65.243.x.x

That is the most asinine thing I have ever heard. You must be some close minded CDMA user who thinks Verizon actually has some clout. Let me be the first to educate you, they don't. T Mobile is the 3rd or 4th largest (depending on where you look) telecommunications company in the world. They would not sell off their assests. And if they did it would not be to Verizon.

joako
Premium
join:2000-09-07
Gainesville, FL

What surprises me is that Alltell tries to be a nationwide carrier... take a look at their site, they even claim "America's Largest Network" even though there are entire STATES where they do not have coverage....
--
Am Heimcomputer sitz' ich hier, und programmier' die Zukunft mir

Born in the USA

@149.9.x.x

America for sale.

The big winner, T-Mobile, is a 100% German owned company and the second biggest, Verizion Wireless, is 49% owned by Vodafone, a British company. The rest were bought by CATV companies and Satellite TV/internet providers. It did not mention CLEC/ISPs putting in any bids, pity they could show us how a network should be built.

It was not that long ago that the US of A had the best, by far, communication network in the world. Every scrap of cable, equipment and brain power was made in the US of A.
jervin123

join:2005-04-14
Philadelphia, PA

Re: America for sale.

So the cable companys little friend buying them spectrum is helping Craptastic get back into the cell phone business... they should just buy the old network from cingular in my area.

antwanp
ObamaBiden 2008 I voted, did you?
Premium
join:2002-05-14
Cedar Hill, TX
clubs:
·RoadRunner Cable

Your point is? T-Mobile (Deutsch Telekom) and Verizon (Vodafone) employ hundreds of thousands of American citizens. That's just like saying buying a Honda or Toyota isn't supporting US jobs. They both employ thousands, and most of those two brands (at least the most popular brands) are built right here in America. Ford and Chevy can't even say that! (most popular models are often built in Canada.)

Your argument is full of outdated, close-minded thinking.

-Antwan L.
--
The Perils of Living in 3-D: »www.antwanpayne.com

Quake110

join:2003-12-20
Ottawa, ON

Re: America for sale.

And I would like to add that the USA is a capitalist country, which means any person, whether he is American or not, can invest his money as he wishes.
rradina

join:2000-08-08
Chesterfield, MO
·Charter Pipeline

That's a compliment to our country. Name any other country that large multi-national corporations so freely invest their money anticipating large returns. Clearly, it's a statement about the safety, integrity and honesty of our great democracy.

I know there are many who criticize this country and, in fact, that's also what makes this nation great. It's not perfect and the future may hold better societies and nations. However, right now every citizen in this great country is truly privileged to live here.
Forums » T-Mobile, Verizon Win Big in Spectrum Auction


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