Verizon offers to Buy Clearwire Spectrum Leases

[supert0nes]

Yes and no. AT&T is doing some token AWS LTE deployment right now, but that is only until AT&T further consolidates its Lower 700 MHz spectrum holdings and gets LTE up and running on Cellular, PCS, and WCS. Then, expect AT&T to bow out of AWS, selling off what little remains to VZW and/or T-Mobile.

 

AJ

 

You don't expect them to jump back in during the next auction? That's a lot of spectrum to concede to T-Mobile/Verizon/Regionals

[ericdabbs]

You don't expect them to jump back in during the next auction? That's a lot of spectrum to concede to T-Mobile/Verizon/Regionals

 

Exactly. If ATT were to sell its AWS holdings, I feel that Tmobile already has too much AWS spectrum for one carrier and I don't really want to see Verizon gobbling up the rest either. Verizon was missing the western part of the US for AWS spectrum before they bought the SpectrumCo nationwide AWS licenses. If Verizon bought all of ATT's AWS spectrum they would have at least 40 MHz nationwide of AWS spectrum. With the upcoming AWS expansion auction for an additional 30 MHz next year, that would further bolster both Verizon and Tmobile's AWS holdings. Sure US Cellular and Cricket can make a splash for licenses but I don't expect anything big since both those companies only focus in particular parts of the US.

 

If anything I could see ATT try to bid AWS spectrum in the eastern part of the US to get nationwide AWS licenses unless the FCC bars them from doing so. I just don't see ATT voluntarily giving up spectrum unless it was part of a deal that required divestitures.

[WiWavelength]

You don't expect them to jump back in during the next auction? That's a lot of spectrum to concede to T-Mobile/Verizon/Regionals

 

Maybe, maybe not. AT&T already has the largest PCS 1900 MHz and Lower 700 MHz holdings in the industry and has the WCS 2300 MHz band entirely to itself.

 

AJ

[WiWavelength]

Exactly. If ATT were to sell its AWS holdings, I feel that Tmobile already has too much AWS spectrum for one carrier and I don't really want to see Verizon gobbling up the rest either.

 

The scales have already tipped irrevocably in that direction. The FCC allowed T-Mobile and VZW to acquire between the two of them most/all of the AWS 2100+1700 MHz spectrum in numerous markets (e.g. in Boston, Atlanta, Seattle, et al., T-Mobile-MetroPCS and VZW now control the entire AWS-1 band). Letting T-Mobile and/or VZW buy out the rest of AT&T's diminished AWS spectrum holdings would not affect the balance of power -- that has already been firmly established.

 

AJ

[Deval]

The scales have already tipped irrevocably in that direction. The FCC allowed T-Mobile and VZW to acquire between the two of them most/all of the AWS 2100+1700 MHz spectrum in numerous markets (e.g. in Boston, Atlanta, Seattle, et al., T-Mobile-MetroPCS and VZW now control the entire AWS-1 band). Letting T-Mobile and/or VZW buy out the rest of AT&T's diminished AWS spectrum holdings would not affect the balance of power -- that has already been firmly established.

 

AJ

 

So where does that leave Sprint in regards to spectrum? What's left out there?

[lynyrd65]

 

So where does that leave Sprint in regards to spectrum? What's left out there?

 

I bet they bid on 600 but probably not AWS unless they plan on buying leap and or uscc next.

 

Sent from my SPH-L710 using Tapatalk 2

 

 

[jefbal99]

If Sprint is going to acquire spectrum, they need to expand the PCS because that is their bread and butter with and eye on the 600Mhz auction, if that ever happens. No need to further complicate spectrum adding AWS. If anything try and pick up Cellular licenses because all the devices already support them.

[supert0nes]

If T-Mobile can get most of their traffic pushed to LTE relatively quickly, maybe Sprint can purchase some PCS from them. They don't really need all that PCS if it's going to go relatively unused. They certainly don't need DC-HSPA+ after another year or 2.

[WiWavelength]

So where does that leave Sprint in regards to spectrum? What's left out there?

 

My opinion is that we are increasingly reaching the saturation point in terms of spectrum. There is plenty of existing bandwidth out there -- it just needs to be utilized. Adding a fourth, fifth, or sixth band to a wireless carrier's roster becomes potentially more trouble than it is worth from an infrastructure and device standpoint. If further auctions (e.g. AWS-2, AWS-3, 600 MHz) actually do take place, I would not be the least bit surprised if the results are underwhelming, particularly if VZW and AT&T are restricted from hoarding more auctioned spectrum.

 

AJ

[iansltx]

IMO, for a relatively small band (like AWS), it's not the end of the world if two providers, who don't want to roam on other AWS networks anyway, end up with all the spectrum in that band. At that point you pretty much have to do something useful with your spectrum because you've got plenty of it.

 

The real issue is what happens when a single provider gets all the spectrum in a band. See AT&T and Cellular in a number of places.

[jefbal99]

The real issue is what happens when a single provider gets all the spectrum in a band. See AT&T and Cellular in a number of places.

 

Or Verizon and cellular spectrum post Alltel purchase. Whoever decided that a single company could have both sides of the cellular spectrum for a given area should have their head examined!

[lynyrd65]

My opinion is that we are increasingly reaching the saturation point in terms of spectrum. There is plenty of existing bandwidth out there -- it just needs to be utilized. Adding a fourth, fifth, or sixth band to a wireless carrier's roster becomes potentially more trouble than it is worth from an infrastructure and device standpoint. If further auctions (e.g. AWS-2, AWS-3, 600 MHz) actually do take place, I would not be the least bit surprised if the results are underwhelming, particularly if VZW and AT&T are restricted from hoarding more auctioned spectrum.

 

AJ

 

The only thing I think Sprint needs spectrum wise after acquiring clearwire is low band spectrum. The south and border regions won't have the same level of service as the rest of the network due to the lack of usable SMR spectrum for the forseeable future.

If these issues persist at the time of the 600 auction, I would expect to see Sprint bid on licenses for that spectrum in those areas.

 

I could also see Sprint seeking to purchase a 20x20 or 10x10 block of that spectrum nationwide if only for the purpose of bumping up average LTE speeds for marketing purposes.

[Deval]

If T-Mobile can get most of their traffic pushed to LTE relatively quickly, maybe Sprint can purchase some PCS from them. They don't really need all that PCS if it's going to go relatively unused. They certainly don't need DC-HSPA+ after another year or 2.

 

Yeah but I doubt they would give up that spectrum, especially since Sprint is the only other major player in that PCS range.

[MacPCS]

 

The only thing I think Sprint needs spectrum wise after acquiring clearwire is low band spectrum. The south and border regions won't have the same level of service as the rest of the network due to the lack of usable SMR spectrum for the forseeable future.

If these issues persist at the time of the 600 auction, I would expect to see Sprint bid on licenses for that spectrum in those areas.

 

I could also see Sprint seeking to purchase a 20x20 or 10x10 block of that spectrum nationwide if only for the purpose of bumping up average LTE speeds for marketing purposes.

i disagree. They would then be needing devices that support all these bands. In your scenario 600 MHz, 800 MHz, 1900 MHz, 2500/2600 MHz. That's asking a lot. Particularly when the 600 wouldn't offer much advantage the 800 doesn't already.

 

I'd focus on trying to acquire more 1900Mhz like they did from us Cellular for Chicago / St Louis.

[ericdabbs]

If Sprint is going to acquire spectrum, they need to expand the PCS because that is their bread and butter with and eye on the 600Mhz auction, if that ever happens. No need to further complicate spectrum adding AWS. If anything try and pick up Cellular licenses because all the devices already support them.

 

The 10 MHz of PCS H block spectrum will definitely help with expanding Sprint's PCS holdings assuming they buy up nationwide licenses. In terms of trying to obtain more PCS licenses in the A-F block especially in markets that only have < 20 MHz, I find its really hard to do given that AT&T, Verizon and Tmobile are all using PCS spectrum for 3G or 4G deployment and have no reason to divest spectrum. Opportunities like buying Leap should be in the discussion but with so much M&A going on with Sprint, I find that buying a Leap would not be advisable in the near future.

 

If Verizon was required to divest all of its PCS spectrum OR Tmobile to divest part of their PCS spectrum in order to obtain more AWS spectrum then that would be an opportunity for Sprint to pick up more PCS spectrum in the A-F blocks.

[MacPCS]

That'll never happen. Sprint's best bet is to either try to get some PCS H-block spectrum at auction or buy some other PCS spectrum from other companies.

 

Contraction in the number of players in the market isn't near over - it's just beginning. It'll end up with maybe 4 national carriers and that's it. These regional carriers are going to be bought up bit by bit, it's just a matter of time.

[supert0nes]

 

If Verizon was required to divest all of its PCS spectrum OR Tmobile to divest part of their PCS spectrum in order to obtain more AWS spectrum then that would be an opportunity for Sprint to pick up more PCS spectrum in the A-F blocks.

 

Verizon can't divest pcs without cellular in the markets att had all. The fcc would probably be overreaching or be labeled as interfering to require att to divest now. They must live with that mistake. Verizon and att are the only ones that can balance the spectrum in the marketplace now.

 

 

I would make t mobile divest pcs though, wasted silver spectrum

 

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