The new advanced wireless services (AWS) spectrum band plan expec...
The new advanced wireless services (AWS) spectrum band plan expected to be adopted by the FCC at its agenda meeting Fri. will benefit rural carriers because “the FCC appears on track to offer smaller, more affordable licenses throughout the…
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country,” Medley Global Advisors said in a research note. The structure of the licenses will also benefit T-Mobile, which “needs to boost its network coverage, particularly in urban areas,” it said. The FCC is leaning toward a plan proposed by T-Mobile and Rural Telecom Group (RTG) that would create 6 licenses, some covering small geographic areas, allowing carriers to acquire “building blocks” of spectrum to fill in gaps, the report said: “The FCC was sold on T-Mobile’s plan in part because it held the promise of strengthening the position of the 4th-place national carrier while giving rural carriers the flexibility to pick up smaller slices of local spectrum.” Medley expects the AWS auction to be highly competitive, especially in urban markets. In most cases, it said, “at least 2 bidders will be competing for licenses in the multi-round auction that may last several weeks.” The AWS auction is estimated to generate about $15 billion, but Medley said “if Congress succeeds in putting a realistic digital TV transition plan in place before the AWS auction begins, it would dramatically boost the amount of spectrum coming to market. That extra supply has the potential to depress prices in the upcoming AWS auction.” Medley, however, put the chance that Congress will complete the DTV transition plan before next June -- the earliest date to begin the AWS auction -- below 50%.