Psst, don’t let any lawyers know, but a government auction of spectrum is scheduled to begin tomorrow.
The 900 MHz specialized mobile radio auction has captured the interest of 128 bidders planning to compete for more than 1,000 SMR licenses sold by the federal government.
The auction has not received as much attention as its predecessors or its scheduled follower, the C-block auction. Nevertheless there are a few sticky points: the auction was delayed a week because of the government shutdown and now that it is scheduled to begin Tuesday, some bidders are raising concerns about having to learn the bidding software in a short period of time and, more importantly, only having days to learn who their potential competitors will be.
Along with the big name companies like Motorola Inc., Geotek Communications Inc. Ram Mobile Data USA L.P., Nextel Communications Inc. and Paging Network Inc., a lot of small companies that want to grab a little extra spectrum are participating in this sale.
The auction is good for industry for a couple of reasons. It has been difficult for the Geoteks and other 900 MHz license holders in the industry to expand their systems because the Federal Communications Commission has not been quick to issue licenses due to changing technologies.
And the companies already licensed at 900 MHz are not being forced off their spectrum to make room for new carriers; instead the rules are geared for firms planning to grow their business.
This auction is not expected to generate the hype or the money associated with the broadband PCS auction. But it’s a good time to look at where auctions have gotten the industry:
Slightly more than a year ago, the FCC completed its narrowband PCS auction, giving licenses to some new companies and existing companies to offer two-way advanced messaging services. And those licenses are just beginning to take shape as companies reveal their technology choices, market strategies and buildout plans.
SkyTel Corp.’s two-way advanced paging system is up and running and even has customers. Motorola Inc.’s FLEX technology has been chosen by a number of businesses planning to offer advanced paging technology to their customers. And AT&T Corp. revealed its two-way technology, giving the industry a choice of suppliers. Glenayre Technologies Inc. and Westlink Paging have announced their testing plans, as have others.
The auction for broadband PCS licenses began exactly one year ago tomorrow and concluded in March. This auction, dominated by entrenched cellular carriers, was used to extend operators’ footprints into regional or nationwide systems. And while these companies have been slow to reveal much about their impending plans, technology choices and management heads have been announced.
Sprint Spectrum is open for customers, bringing competition to the Washington D.C.,-Baltimore market.
And C-block auction participants hold their breath until Dec. 18, when that auction is now scheduled to start. Ninety days has turned into nine months for bidders in the entrepreneur auction. (Don’t tell any lawyers.)
