600 MHz auction results posted and transition schedule

[payturr]

I'm looking at the evidence on the board and seeing this auction differently. I'm leaning toward the opinion it can be a moderate success. Maybe not the money printing operation the last AWS auction is, but I don't see where the doom and gloom is on it.

 

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Oh it's definitely gonna make money. I don't think this is a waste of time per say, but the FCC thinks they're gonna rake in a fortune like AWS-3 turned out to be, according to reports.

[payturr]

But they are deploying LTE.

I saw some posts on HowardsForum suggesting it's part of a Sprint roaming deal under CCA. lilotimz was stating that. Also, always possible they have other spectrum holdings.

[red_dog007]

I saw some posts on HowardsForum suggesting it's part of a Sprint roaming deal under CCA. lilotimz was stating that. Also, always possible they have other spectrum holdings.

They only have 800MHz below Sprints 800MHz.  Southerlinc owns ~7.5MHz.  They are a roaming partner yes, but not using Sprint's spectrum, just like many other roaming partners of Sprint.

 

SouthernLinc won't be able to do larger than a 3x3 for LTE, but it will be below 818MHz, but still within B26 which goes down to 814MHz.

 

If Sprint still owns owns spectrum below 818MHz, could be good news?

[NYC126]

Report: SoftBank still looking like a bidder in spectrum auction

11:45 AM ET • S • Jason Aycock

SoftBank (OTCPK:SFTBY -1.4%) still looks like a bidder in the FCC's broadcast incentive spectrum auction.

But the company "won't be a big buyer," a source tells CTFN.

The participation of SoftBank in the auction has been an open question, with spectrum-rich Sprint (S -4.6%) electing to sit out what could be an expensive endeavor. So if it's taking part, it's likely looking for opportunistic purchases and "niche fill-ins."

SoftBank has been using creative financing to help Sprint with liquidity issues, and so a chance to bid on bargain spectrum could present itself with an obscurely named entity or smaller partner.

Now read Implications Of SoftBank Split »

 

Source seeking alpha

[Trip]

For anyone who wants to follow it, here's the auction status page for the Incentive Auction, which starts today.

 

https://auctiondata.fcc.gov/public/projects/1000

 

- Trip

[red_dog007]

With Sprint selling spectrum to a Softbank affiliate to lease bank, I'd imagine the chances of a Softbank affiliate bidding in this auction would be a bit higher now.  Or maybe even have a deal struck, like with Dish.

[Arysyn]

For anyone who wants to follow it, here's the auction status page for the Incentive Auction, which starts today.

 

https://auctiondata.fcc.gov/public/projects/1000

 

- Trip

 

Is this the part of the auction where carriers bid for 600mhz spectrum?

[cyclone]

I believe the way the auction works is in three steps:

 

1. TV Stations decide what channels and amount of spectrum they are willing to give up. Too little and auction doesn't happen.

2. TV Stations negotiate prices as compensation for giving up said channels/spectrum. Continues until prices set.

3. Carriers/Entities bid on spectrum in normal auction. Too little money earned for amount of spectrum, FCC lowers amount and auction starts over until reasonable price for amount of spectrum is met.

[banananuts87]

It's here. The PN announcing a 126 MHz clearing target, good for 10 blocks in most markets:

 

https://apps.fcc.gov/edocs_public/attachmatch/DA-16-453A1.pdf

 

And here's the list of markets and number of blocks for sale in each:

 

https://apps.fcc.gov/edocs_public/attachmatch/DA-16-453A2.pdf

 

- Trip

I didn't see Connecticut.

[Trip]

https://apps.fcc.gov/edocs_public/attachmatch/DA-14-759A4.pdf

 

Connecticut is part of the New York PEA.

 

- Trip

[ericdabbs]

For anyone who wants to follow it, here's the auction status page for the Incentive Auction, which starts today.

 

https://auctiondata.fcc.gov/public/projects/1000

 

- Trip

 

Huge bummer that Los Angeles is so hampered by 600 MHz that it can only offer 5 (5x5 MHz blocks).

[red_dog007]

Softbank announced the sell of $7.9 Billion worth of Alibaba stock yesterday.  The same day Auction 1000 started.  Hmm....

 

I wonder what that $7.9 billion will be used for!? A new investment of some sort???? :-D

[Fraydog]

Softbank announced the sell of $7.9 Billion worth of Alibaba stock yesterday. The same day Auction 1000 started. Hmm....

 

I wonder what that $7.9 billion will be used for!? A new investment of some sort???? :-D

Paying down debt, likely.

 

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[SkyGuy98]

Paying down debt, likely.

 

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Wouldn't be pretty or flashy, but it would be a big relief for Sprint.

[JimBob]

Wouldn't be pretty or flashy, but it would be a big relief for Sprint.

Softbank is not paying down Sprint's debt, as that would be giving the company money.

 

Softbank itself has $109 billion of debt on top of Sprint's $34 billion of debt.  

[greenbastard]

Softbank is not paying down Sprint's debt, as that would be giving the company money.

 

Softbank itself has $109 billion of debt on top of Sprint's $34 billion of debt.

Not giving, but taking over the debt (consolidating and then becoming the creditor) and giving Sprint more time and a more favorable interest rate.

 

I doubt that happens, but it's a possibility.

[Fraydog]

Sprint could just get bought out completely by SoftBank, right? Doesn't that invoke automatically if Sprint buys more than 85%, right? 

[ericdabbs]

Sprint could just get bought out completely by SoftBank, right? Doesn't that invoke automatically if Sprint buys more than 85%, right? 

 

U mean if Softbank buys more than 85%?  Yes if Softbank's investment into Sprint equates to 85% or higher stake in Sprint, it will trigger a tender offer to buy the remaining 15% stake in Sprint of which Softbank will have to come up with the funds to buy the remaining 15% immediately which is not in their best interest given their already huge amount of debt.

[ericdabbs]

Any new updates to the 600 MHz auction?

[Hmight]

Softbank is not paying down Sprint's debt, as that would be giving the company money.

 

Softbank itself has $109 billion of debt on top of Sprint's $34 billion of debt.  

This is wrong. It should say 110 Billion dollars of Debt, including Sprint's 34 billion. Not on top. Softbank financials are consolidated. 

[EvanA]

http://www.multichannel.com/news/fcc/spectrum-auction-broadcaster-exit-price-86422558704/406027

 

Reverse auction generated a clearing cost of $86,422,558,704. Ouch.

 

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[clbowens]

http://www.multichannel.com/news/fcc/spectrum-auction-broadcaster-exit-price-86422558704/406027

 

Reverse auction generated a clearing cost of $86,422,558,704. Ouch.

 

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Yeah, I saw that.  And also 126Mhz up for grabs.

[EvanA]

Yeah, I saw that. And also 126Mhz up for grabs.

Only at max 100MHz is actionable. The extra 26MHz is reserved for guard bands and the duplex gap. Some markets have even less than 100MHz available. LA only has 50MHz available for auction.

 

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[red_dog007]

Geez. Doesn't seem like it will be a very successful auction.



What about all the white space?  Is white space prices set by the FCC and included in this $83 billion total? Can white space be potentially significantly cheaper than broadcaster owned spectrum? Can we expect at least all white space to get auctioned off successfully where it exists if there is at least 42MHz of it?

[dnwk]

I don't know any of participating carriers have that much money to spend.