U.S. wireless spectrum auctions may have big implications for Deutsche Telekom (DT), Moody’s Investors Service said Mon. Moody’s already has factored potential upfront costs of any licenses subsidiary T-Mobile wins into DT’s A3 and Prime-2 ratings and stable outlook, it said: “DT has the capacity to accommodate these investments without any… adverse impact on its rating given the strength of its future free cash flow generation.” T-Mobile likely will remain DT’s “main growth engine,” Moody’s said.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
The U.S. Appeals Court, D.C. on Fri. rejected arguments by wireless licensees Mobile Relay Assoc. (MRA) and Skitronics that the FCC treated them in an “arbitrary and capricious” way by not letting them transfer operations to what they view as superior spectrum, in the 800 MHz rebanding. While narrow, the ruling that includes language written by Judge Karen Henderson with implications that may worry carriers challenging FCC rules in other case.
Chmn. Martin last week began circulating a Notice of Proposed Rulemaking (NPRM) on revised service rules for the 700 MHz auction, readying for a vote at the Aug. 3 FCC meeting. Revised Emergency Alert System (EAS) requirements that have made carriers nervous aren’t on circulation, sources said. Commissioners also are being asked to vote on a broadband over powerlines (BPL) reconsideration item, plus one addressing maritime wireless issues.
E-911 supporters urged Congress Wed. to approve funding for wireless E-911 technology that would make it possible for Americans to connect to safety services anywhere in the country. Only part of the wireless E-911 network is built, and many states need federal and state grants to upgrade equipment and technology to route calls from public safety access points (PSAPs) to the proper emergency personnel, said Greg Rohde, exec. dir.-E-911 Institute.
A company owned by Mario Gabelli filed a short-form application to bid in the Aug. advanced wireless services (AWS) auction, according to records made available by the FCC on its website. Gabelli plans to participate in the auction as a backer of Lynch AWS Corp. The records provide ownership information on 252 companies filing short-form applications to participate in the auction.
The FCC Wireless Bureau named the 252 companies filing short-form applications to participate in the Aug. advanced wireless services auction. The late-Fri. posting offered few surprises. The bureau accepted 81 applications, listing 171 as incomplete, meaning applicants must file more information. If Yahoo, Google or other nontraditional major plan to bid, they filed under different names.
Preventing interference at 2.5 GHz, especially in light of growing satellite activity in that band in Asia and the Middle East, is likely to be one of the biggest topics during WRC 2007 when it gets under way next Oct., speakers agreed during a panel discussion Thurs. at the Wireless Communications Assn. conference. Industry officials said the U.S. appears to be making progress in protecting the band, which is a priority of the U.S. high tech sector.
The 3rd U.S. Appeals Court, Philadelphia, Thurs. rejected a call by Council Tree, Bethel Native Corp. and the Minority Media & Telecommunications Council to halt a coming advanced wireless services auction. The court ruled only a day after oral arguments, setting the advanced wireless services auction back on track for its scheduled Aug. 9 start.
PHILADELPHIA: Judges gave mixed signals in their questions and reactions to attorneys as the 3rd U.S. Appeals Court, Philadelphia, Wed. heard oral arguments on the FCC’s designated entity order. Arguments unfolded over nearly 90 minutes in a case that will determine whether the long-awaited advanced wireless services auction will begin as expected Aug. 9. Lawyers watching the proceedings said the court’s direction was difficult to augur.
The telecom investment community is more reserved in the current boomlet than in its predecessors, but there are sweet spots to hit, panelists said Tues. at the Wireless Communications Assn. conference. Investment opportunities are present in the content, spectrum leasing, and specific international markets, they said, though incumbents’ sheer size makes the venture capital community a bit leery of smaller operations generally. Smaller companies that show an ability to adopt a large customer base rapidly have an advantage even in the face of other shortcomings, the investment analysts said.