Sprint not participating in the 600 MHz auction (report)

[Paynefanbro]

Well, it's hard for Sprint as they don't have the funds, but by sitting out, they're further enabling the competition. The Densification plan will inevitably fix their coverage/performance woes, the question is how long is the wait?

 

Sent from my M8

 

I don't know but I'm willing to bet it'll be shorter than half a decade.

[ericdabbs]

I don't think it does. The billions sprint is spending on NGN is largely self financed. To the extent they are receiving any additional capital from SoftBank it comes in the form of the leasing facilities they are setting up, which in the in is nothing more than a low interest loan. If sprint had made the decision to participate in the 600 auction it would have been a clear and unambiguous sign that SoftBank believed in a sprint turn around with or with out T-Mobile as it would have required an additional capital investment in sprint by SoftBank (probably would have had to tap the Japanese bond market). So this is not a good sign and points to doubts on softbanks part. At the same time SoftBank increasing their position in sprint points the other way. I think the most likely play SoftBank is aiming for is trying to make sprint more attractive to a potential buyer by improving its competitiveness (this plays niecely with marcelo's recent comments about sprint and a cable company tie up) while waiting on events in the US regulatory environment to change in favor of the T-Mobile merger.

 

In the in I think SoftBank will either stay with sprint or not depending on weather or not they believe they can merge with T-Mobile, but that is just a guess.

 

I was thinking that this was the case as well.  I remember reading an aritcle on fiercewireless that the NGN  project that said that they have been getting network vendor financing to help fund the costs.

 

 

It has to be something. Marcelo and Masa are not stupid, and they don't just love to hear themselves speak. But this is intentional. Marcelo even said about a week ago they would soon announce what their 600 plans are. They want us to know they are not bidding on 600. Why? The more time I've had to digest, my guess is they are joining the VZW/ATT argument and say they have plenty of spectrum and not really interested right now. This feels like an attempt to delay the auction.

 

If only Tmo actively is saying they are gung ho for the auction and everyone else acts ho-hum, and the purpose of this auction is to raise money, well, delaying until there is active interest seems like a rational thing for the FCC to consider. At least that's what three out of four national carriers would like them to deduct.

 

Using Tapatalk on BlackBerry Z30

 

 

Robert you definitely have a good point there.  Perhaps this is a ploy by Sprint to join the big 2 in claiming they have enough spectrum for now in hopes of delaying the auction for another 2-3 years or so...so that it helps Sprint buy time to execute the NGN project.  I am actually starting to like this scenario more if it can pan out.

 

Certainly if the FCC does delay it for another 2-3 years then by the time 2018 comes around the big 2 and Sprint carriers can re-evaluate to see if 600 MHz can be auctioned off again.  I guess that would also give broadcasters more time to plan out what it would take for them to vacate the frequencies.

[RichardXy]

Sprint needs every last bit of 600 MHz spectrum it can buy along the IBEZ. We have already had a lost decade with Sprint's slow roll out along the borders especially in San Diego. Have we even hit 90% completion? Not participating in the 600 MHz auction may be the beginning of the end for Sprint. We need to blow up Marcelo's twitter and get him to change his mind immediately.

[Paynefanbro]

Sprint needs every last bit of 600 MHz spectrum it can buy along the IBEZ. We have already had a lost decade with Sprint's slow roll out along the borders especially in San Diego. Have we even hit 90% completion? Not participating in the 600 MHz auction may be the beginning of the end for Sprint. We need to blow up Marcelo's twitter and get him to change his mind immediately.

 

By the time this is even going to start being deployed, Sprint will likely already have deployed 800MHz in the IBEZ.

[Yuhfhrh]

Sprint needs every last bit of 600 MHz spectrum it can buy along the IBEZ. We have already had a lost decade with Sprint's slow roll out along the borders especially in San Diego. Have we even hit 90% completion? Not participating in the 600 MHz auction may be the beginning of the end for Sprint. We need to blow up Marcelo's twitter and get him to change his mind immediately.

 

Twitter isn't going to change his mind.

[RichardXy]

Well any market that is not 100% complete by now probably will not benefit from densification for years to come. The best bet to fill in the gaps is a lot of low end spectrum. The lower the better. Either these markets have suffered from poor planning by Sprint or because of Nimby-ism and over-regulation but either way densification will only prolong the suffering compared to 600 MHz spectrum. Densification will run into every roadblock that network vision ran into. Upgrading existing sites with 600 MHz will improve coverage over a wide area and provide indoor data coverage whereas densification will only lead to more delays for permits etc.

[Arysyn]

I still say that this idea that Sprint not participating in the auction is going to delay it, just doesn't make any sense. Again, Sprint has declined to participate in the last few auctions, which were not delayed because of that. Even though Verizon and AT&T haven't shown much interest in the auction, doesn't mean that it will be delayed.

 

Besides, as I mentioned earlier, this auction seems catered to smaller carriers, and T-Mobile in a way. If they began declining to participate in the auction, then perhaps it would be postponed.

[MtnSierraSprint]

No matter what, in all this, Sprint is leaking their plan deliberately now. It is not an accidental slip of the tongue. Is it because they plan to buy out the company and take it private? Is it because they plan to buy out someone else with low band spectrum out the wazoo? Is it to help put pressure on the FCC to postpone the auction when Sprint has more money? Is it something else?

 

 

Regarding bluffing the Federal Government, particularly a regulatory and enforcement agency like the FCC that knows who they are dealing with, would seem to be a misguided exercise. If I am the FCC I would be thinking - these weasel, card shark, poker playing wireless carriers expect me to believe they could not care less about low bandwidth spectrum - yeah right. The only reason I might postpone the auction if I am the FCC is because they think they can get more money later if they hold off. Then again, if there is any sincerity to the wireless carriers disinterest in the 600 MHZ auction it would be that they would rather not have to  spend money on additional spectrum right now when they are all focused on building out and upgrading their networks. So as Robert suggested the feigned disinterest in 600 MHZ may just be the wireless carriers saying they have other priorities right now and their budgets and networks will be better able to take advantage of 600 MHZ spectrum in a year or two. If I am the FCC, improved quality of service is something I can accomodate and work with. A delay in the auction gives Sprint/Softbank time to make critical upgrades and be in a better position to put together funding for 600MHZ. Although it sure sounds like Sprint/Softbank are heading in the direction of making some kind of deal with another player.

 

 

 Besides, this auction already seems like it has been more catered to smaller carriers, and T-Mobile since it was announced.

 

This would certainly be one more reason why if I were the FCC that I would not delay the auction, the more low bandwidth spectrum that winds up in the hands of those carriers that really need it the better. The problem is that both ATT and Verizon may prefer to not spend money on the auction right now, but they will not sit on the sidelines if this possible effort to delay the auction does not work. Sprint would seem to be in the worst position if they and Softbank really can not come up with the money.  I bet those in charge of making decisions at the FCC have a much better picture of each carriers abillity to participate in the auction than we do.

 

Which goes back to why it is distressing to consider Sprint might sit out the auction, because Sprint needs low bandwidth spectrum. When Anthony asked why all the doom and gloom, I would say it is because it gives the impression that Softbank may not be in it for the long haul, or willing to go all out to make Sprint a winner. For those who think it is game over, as has been pointed out this game is very much in play, and there are still ways Sprint can come out ahead.

[Arysyn]

I often wonder why there isn't a site online that shows current, up-to-date maps of the spectrum holdings carriers have, along with detailed information. It would make sense, seeing that these are public airwaves. Of course I'm talking about something better than just listing spectrum ranges, but detailed information which really helps people to see where the spectrum is being used and how much of it is being used by which carrier.

[lilotimz]

I often wonder why there isn't a site online that shows current, up-to-date maps of the spectrum holdings carriers have, along with detailed information. It would make sense, seeing that these are public airwaves. Of course I'm talking about something better than just listing spectrum ranges, but detailed information which really helps people to see where the spectrum is being used and how much of it is being used by which carrier.

 

FCC ULS / Dashboard

[MtnSierraSprint]

Regarding my statement - "Although it sure sounds like Sprint/Softbank are heading in the direction of making some kind of deal with another player." It also sure sounds like they are going private, so this is one unpredictable circus to try and figure out.

[JeffDTD]

When will we finally accept that Tmo & Sprint cannot match the size and depth of ATT and Verizon's networks separately? Is that what all of this disappointment is about? 600mhz was going to give the little guys "the same network" as the big guys? And now its time to give up? Tmo has grown by almost 10M subscribers over the last 2+ years based on pricing and advertising an "idea" about network quality. Sprint cant be Verizon or ATT, but it will keep the lights on by going after Tmo with its massive spectrum assets.

 

Or they could just bet the farm on 600mhz, sell off spectrum and assets to keep the lights on, plan to have an amazing network once all the technology hurdles are overcome... But goodness, that sounds so familiar. I vote for strength today.

 

Sent from my XT1254 using Tapatalk

[Arysyn]

FCC ULS / Dashboard

I know about that, but it isn't the same as what I mean. I'm talking about a site which has detailed coverage maps like what is on the Sprint site, or like what T-Mobile use to have before they decided to copy Verizon's system of shading almost everything in one color.

 

I'd like to see different colors representing different spectrum allocations, both in total spectrum and in paired spectrum. Then a sidebar with information both individually and comparatively of carriers.

[anthony.spina97]

By the time this is deployed, Sprint will likely already have started deploying 800MHz in the IBEZ.

By the time this is deployed, Sprint will probably be DONE deploying 800 MHz in the IBEZ.

 

-Anthony

[Paynefanbro]

By the time this is deployed, Sprint will probably be DONE deploying 800 MHz in the IBEZ.

 

-Anthony

 

Yep!

[Mr.Nuke]

There likely are some regional carriers participating in this auction, not just T-Mobile. So, it likely will happen regardless of Sprint's, AT&T's, and Verizon's participation. Besides, this auction already seems like it has been more catered to smaller carriers, and T-Mobile since it was announced.

This entire auction was predicated on television broadcasters vacating the spectrum in exchange for a portion of the proceeds aka the reverse auction. If it is only T-Mobile and a couple of rural carriers bidding, the tv broadcasters have very little incentive to participate in the process. So no, I don't think the auction proceeding is a forgone conclusion. The other factor on the back-end is that If the other big 3 sit out it is questionable that the forward auction meets the price per Mhz-POP criteria as well. 

[Arysyn]

This entire auction was predicated on television broadcasters vacating the spectrum in exchange for a portion of the proceeds aka the reverse auction. If it is only T-Mobile and a couple of rural carriers bidding, the tv broadcasters have very little incentive to participate in the process. So no, I don't think the auction proceeding is a forgone conclusion. The other factor on the back-end is that If the other big 3 sit out it is questionable that the forward auction meets the price per Mhz-POP criteria as well.

I can imagine these television broadcasters being defensive of the spectrum they have either way. However, T-Mobile was very successful in getting the 700mhz cleared in a very timely fashion. Since T-Mobile definitely is going to be at this auction prepared with billions of dollars to spend on the 600mhz spectrum, it is very unlikely the television broadcasters will be able to get the FCC to postpone the auction, just as the other carriers won't be able to, except possibly all of whomever is going to compete against T-Mobile in it.

 

To simplify, unless the only business planning to be at the auction is T-Mobile, then it is doubtful the FCC will postpone the auction, other than from some non-related issue. If the television broadcasters fight this in any way, then that'll need to be dealt with. Yet, based on T-Mobile's history of working well with them, I'm doubting they will be an issue.

 

I say this, despite that I rarely compliment T-Mobile. Although, they deserve credit with this, and I fully believe T-Mobile will do as much as they possibly can to make this auction work out well without competitive delay or distraction, and also will be very workable in making sure they get this spectrum transferred over to them as quickly and as peacefully as possible.

[Fraydog]

There's still rural areas where AT&T needs low band. What they do will be interesting. 

 

What I know right now is this:

 

Sprint isn't bidding. Verizon is likely not bidding because they are looking to buy Dish's spectrum. AT&T is pissed they can't get all the 600 MHz nationwide which they would do without the reserve in place. Something has to change here. 

[Mr.Nuke]

I can imagine these television broadcasters being defensive of the spectrum they have either way.

It isn't a matter of being defensive per se. This is an auction unlike any other thus far in that they're auctioning off spectrum that in many cases presently has an owner. Incumbent tv stations need to be incentivized to participate. If there is a lack of interest from the wireless industry, the tv stations have little incentive to sell.

 However, T-Mobile was very successful in getting the 700mhz cleared in a very timely fashion.

Again, see above. This isn't the 700 auction. This is predicated on 1) incumbent tv broadcasters in the 600 MHz range participating and 2) reserves being met. Neither point has any prevalence to the 700 auction.

Since T-Mobile definitely is going to be at this auction prepared with billions of dollars to spend on the 600mhz spectrum

The problem is this whole auction was prepared under the assumption that there would be multiple competitive bidders. If the perception is that T-Mobile is the only big boy showing up to bid there is no incentive for the existing rights holders to participate and little incentive for the FCC to go forward with it right now. This was setup to create a competitive bidding situation among the big 4 in order to raise funds for the government and payoff the tv stations to vacate the spectrum. If T-Mo is the only bidder those goals are in serious jeopardy.

it is very unlikely the television broadcasters will be able to get the FCC to postpone the auction, just as the other carriers won't be able to, except possibly all of whomever is going to compete against T-Mobile in it.

 

To simplify, unless the only business planning to be at the auction is T-Mobile, then it is doubtful the FCC will postpone the auction, other than from some non-related issue. If the television broadcasters fight this in any way, then that'll need to be dealt with. Yet, based on T-Mobile's history of working well with them, I'm doubting they will be an issue

This isn't a traditional auction though. Broadcasters could easily postpone or cancel the auction by signaling to the FCC they aren't willing to participate in a farce of an auction (which very likely happens if it is only T-Mobile at the table). And to your last paragraph there, going back to Robert's post this afternoon, as of right now based on the comments of the other 3 carriers it is potentially setting up to be only T-Mobile at the auction for all practical purposes.

[bigmachine]

The FCC has characterized this as a "once-in-a-lifetime" auction, but does anyone really believe that?  The trend is for more and more content to be delivered over IP (Netflix, Apple TV, HBO Go and other Network apps, etc.)  I started in broadcast, so I understand its importance, but at a certain point it seems to me that market conditions are going to allow for a lot more spectrum to be auctioned.

[Arysyn]

I've learned alot about the process of this auction I figured a bit differently on. I've been basing my outlook of television broadcasters based on what I've heard many times in the news, etc regarding many of them being given these public airwaves either for free or very little cost. I'm not aware of the specifics of those broadcasters involved with the 600mhz spectrum, in terms of what they paid or did not pay for the spectrum.

 

However, if they did not put out much cost for what they'd be giving up, then there shouldn't be much of a big deal by them giving it back, so long as they are reasonably compensated for any costs incurred by the transition, along with receiving whatever equivalent they need to what they currently have, along with other assisting needs.

 

I have a strong viewpoint that this auction is very important and I think the wireless needs for this spectrum greatly outweigh those of television broadcasters. I believe all carriers ought to be wanting this spectrum. Although seeing as it seems to only be attracting regional carriers, along with T-Mobile, this doesn't change the importance of the spectrum, nor its auction to the wireless industry and its customers.

[Calvin200]

in this regulatory climate I fear if there are no big bidders I think they will consider any downward distribution a success.   

[Thomas L.]

I think it's a stupid decision, unless Masa has learned something that shows things are going to be drastically different in terms of the regulatory environment re: new site approval. Densification can happen really fast, in the right environment, like in China. China Mobile has at this point activated nearly a million, if not more, band 41 macro sites, their entire LTE network is band 41, so densification is the only option. But that was only able to happen because the government owns China Mobile, the fiber provider, and tower construction company. Here every community has different laws about zoning and permits, it's going to take ages for that process even if Sprint does have money for it.

[dnicekid]

I think that Softbank is buying more shares and sitting out this auction because they are preparing to sell the company.

 

Sent from my Nexus 6

 

 

Honestly that makes the most sense. We are all so confident in son but we know he has shopped sprint. Yet our egos almost dismiss it like it never happened.

No one wants to buy sprint now- well can't blame them. I think son has a plan and it could be an exit plan. He is cleaning up the house and making the improvements to sell it.

[Arysyn]

Honestly that makes the most sense. We are all so confident in son but we know he has shopped sprint. Yet our egos almost dismiss it like it never happened.

No one wants to buy sprint now- well can't blame them. I think son has a plan and it could be an exit plan. He is cleaning up the house and making the improvements to sell it.

Even though I've been trying to be optimistic about Masa and Softbank's interest in Sprint being high, especially since they have bought alot more shares in Sprint, etc.

 

However, I use to be skeptical about their continued interest, which now with this auction announcement, combined with the lack of updates about NGN and also the mention by Masa that he already has tried to sell Sprint, all together does begin to make me a bit more skeptical again.

 

Yet, I'm still hoping the best for them as the whole combined company they are now. I hope NGN is going to begin at the beginning of the new year 2016, while Masa plans on T-Mobile still, at least I hope these are going to happen.