FCC Incentive Auction Racks Up $86B In Clearing Costs

[cdmagurus.com]

The FCC today said that the reverse portion of its incentive auction is now complete. Bidding for 600 MHz television airwaves is over, and the cost to clear the 126 MHz spectrum target exceeded $86.4 billion. The FCC expects to begin the forward portion of the auction soon, which will see wireless companies bid on the spectrum blocks. Carriers AT&T, T-Mobile, and Verizon Wireless are participating, but Sprint is sitting out. The auction drew lots of interest from individual bidders, too. It's not clear how much the FCC expects to make from auctioning off the airwaves moving forward, but bidders will need to meet or exceed the $86.4 billion at a minimum. The airwaves are vital low-band spectrum to be used for mobile broadband. "Today, bidding concluded in the reverse auction, establishing the cost for clearing 126 MHz in the TV band for wireless use," said the FCC's Gary Epstein in a prepared statement. "Strong participation from broadcast stations made this initial clearing target possible. Now the action shifts to the forward auction, which will give wireless bidders the opportunity to compete for this beachfront spectrum to meet America's growing mobile data needs."


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