AT&T Top Buyer at US Airwaves Auction
AT&T bid a total of USD18.2 billion to win licenses of so-called AWS-3 spectrum; Verizon bid USD10.4 billion and T-Mobile US Inc bid USD1.8 billion, according to the results released by the Federal Communications Commission.
The record USD44.9 billion auction, which ended on Thursday, demonstrated the voracious appetite of wireless carriers and other companies for spectrum, which has become a prized commodity as companies race to satisfy the growing consumer demand to stream video and other data-guzzling content.
Dish itself did not win any licenses, but it had entered into joint bidding agreements with SNR Wireless LicenseCo LLC and Northstar Wireless LLC, in which it has indirect ownership interest.
Those two companies bid a total of \\$13.3 billion, but had applied to receive a discount as small business entities, bringing their net bid amount to \\$10 billion.
As biggest bidders, AT&T, Dish's partners and Verizon snapped up airwaves in some of the most coveted and expensive markets such as New York and California.
Dish's bidding significantly exceeded expectations, said MoffettNathanson analyst Craig Moffett, adding that it put a damper on the investors' hypothesis that the satellite company had expected to turn around and sell the newly acquired airwaves to Verizon or another buyer.
Dish's shares fell 1.2 percent in afternoon trading to USD72.57.
Verizon and AT&T bid less than what some analysts had previously estimated.
Verizon shares were relatively unchanged at USD46.42 and AT&T shares were up 1.2 percent at USD33.36.
Dish acknowledged in a statement it had invested in two entities that participated in the auction but did not further explain its plans, citing FCC's anti-collusion rules.
Verizon said in a statement it bought a total of 181 licenses that cover markets reaching 61 percent of the United States. Sprint, the third-largest US carrier, had decided to skip the AWS-3 auction.
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