The ongoing Advanced Wireless Servies-3 spectrum auction conducted by the Federal Communications Commission (FCC) has accumulated a record-breaking $45 billion after the 157th round of bidding, breezing past the regulator’s initial estimate of a little over $10 billion. In 2008, the FCC conducted wireless spectrum auction had accumulated a total of $19.6 billion.
The AWS-3 spectrum auction, which was initiated on Nov 13, 2014, has received as many as 70 applications. Altogether, 1,614 AWS-3 licenses have been put up for sale in the 1695-1710 MHz, 1755-1780 MHz and 2155-2180 MHz bands. Currently, 1 license out of the total 1,614 is still available for bidding.
The aforementioned spectrum bands are highly useful in the deployment of 4G LTE (Long-Term Evolution) services. Notable auction participants are Verizon Communications Inc. (VZ), AT&T Inc. (T), T-Mobile US Inc. (TMUS), America Movil SAB (AMX) and DISH Network Corp. (DISH). However, Sprint Corp. (S) is an exception as the company has decided to take part in the forthcoming broadcast incentive auction in 2016 instead.
Wireless networks are the key for future growth of the overall telecom industry. Severe spectrum crunch coupled with gradual smartphone adoption are compelling wireless operators to seek other options to raise revenues. Massive promotional expenditures and cut-throat pricing competition are major concerns presently plaguing the industry. Nevertheless, growing demand for technically superior wireless products has been the silver lining for the telecom industry in an otherwise tough environment.
Unexpectedly high bidding for AWS-3 Spectrum clearly indicates that telecom operators are expecting further growth in demand for mobile data and video services in the long run. Unprecedented growth in high-speed mobile Internet traffic, in particular toward wireless data and video, has transformed the industry into the most evolving, inventive and keenly contested space. Any new network standard aims at faster data connectivity, quick video streaming with high resolution and rich multimedia applications.
The spectrum license winners from different regions will upgrade their respective networks to gain a competitive edge. Wireless network standards are continuously evolving around the globe to offer faster speed. This in turn will result in increased capital expenditures and a surge in demand is likely to be seen by telecom infrastructure gear manufacturers.
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