Reverse Auction Concludes at $40.3 Billion
The reverse auction portion of Stage 3 of the FCC incentive auction concluded Thursday, as expected (see 1611280055), at a clearing cost of $40.3 billion to clear 108 MHz, said the Public Reporting System. That’s within the range expected (see…
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1610250060), and a further stage is considered likely, said Justin Nielson, senior researcher for S&P Global Market Intelligence, in an interview. The Stage 2 reverse auction clearing cost was $56.5 billion, and Neilson said a reduction into the $30 billion range for Stage 4 likely will bring the spectrum on auction into line with what forward auction bidders are looking to pay. Stage 4 is expected to have a clearing cost of 84 MHz, according to the FCC's band plan. The forward auction generated $20.9 billion in Stage 2, and closed in a single day. That’s not likely to occur this time because the prices are likely low enough for some bidders to make a serious grab for spectrum, Nielson said. Stage 3 of the forward auction is expected to start Monday.