Like Wireless Industry, AWS-3 Auction Was Fiercely Competitive, AT&T Says
T-Mobile is dead wrong that the AWS-3 auction was bad for consumers, AT&T said Wednesday in a blog post. AT&T Vice President Joan Marsh said the wrong lesson to draw from the AWS-3 auction is that the auction shows the…
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need to protect competitors to AT&T and Verizon in next year’s TV incentive auction. “The auction reallocated 50 MHz of valuable paired spectrum to the wireless industry -- an allocation that T-Mobile itself has long advocated for,” she wrote. Among the auction's real lessons is that you can’t win if you don’t bid, Marsh wrote. T-Mobile won 151 bids for a total of $1.77 billion, but at one point had entered as much as $3.5 billion in bids, she said. “From a strategic perspective, one can surmise that T-Mobile came to the auction with a $3.5B budget but, as valuations rose, decided to take some of its capital off the table, which was certainly its prerogative to do.” Results also show that Dish Network, not AT&T and Verizon, was T-Mobile’s real competitor in the auction, Marsh said. Bidding patterns suggest T-Mobile was focused on the G-block, “bidding aggressively for it in major markets like Chicago, Seattle and Denver,” she said. In the end, the Dish-controlled designated entities were the ones that outbid T-Mobile for the block in the top 100 markets, Marsh said. The auction results also show a fierce competitiveness that mirrors the wireless industry, Marsh said. “Even setting aside Dish’s unusual bidding construct, auction competition was going to be fierce anyway you cut it. T-Mobile is a big proponent of competition unless they are facing it in an auction – there they prefer protection.” T-Mobile has offered its own takeaways from the AWS-3 auction. “It is an undeniable fact that in Auction 97 AT&T and Verizon’s deep pockets enabled them to win 63 percent of all paired AWS-3 spectrum, or roughly 91 percent of the value of all the spectrum won by wireless carriers in that auction," T-Mobile responded. "They have the incentive and the ability to foreclose smaller carriers from spectrum auctions, and the last auction results clearly demonstrate that. Considering Verizon and AT&T also currently control 73 percent of the nation’s low-band spectrum, a similar outcome at next year’s incentive auction would be a disaster for competition and innovation in mobile broadband.”