The C-block auction isn’t just for large companies-not if your strategic goal is the 53,000 pops of McAlester, Okla.
That’s the site of Oklahoma’s most notorious prison, as well as the market held by OnQue Communications Inc. at the end of round 90 of the government auction of personal communications services licenses. The property was held for numerous rounds by MBO Wireless Inc.
Bids totaled nearly $10 billion as of press time Friday. The event is in its fourth month, and is now operating at three rounds a day. It is expected to close soon.
While mammoth players wager millions of dollars for large metro markets-NextWave Personal Communications Inc. has bid $994 million for New York City-at least a dozen small players with specific goals are hanging onto some out-of-the-way markets.
For instance, Williston, N.D., may not seem like a prize to NextWave, but it must mean something to Vincent D. McBride. Round after round, he continues to hold the 26,300-pop area with a net bid of $462,755.
Sometimes the strategy of a small bidder appears obvious, such as clusters of markets in the same state. For instance, SouthEast Telephone L.P. Ltd. seeks five markets in Kentucky; Point-To-Point Communications Inc. was pursuing three Connecticut licenses, but lost two in recent bidding.
Other groups have a more eclectic collection, such as Southeast Wireless Communications L.P. It has high bids for Tallahassee, Fla., Panama City, Fla., Bryan/College Station, Texas, Dalton, Rome, Ga., and Lynchburg, Va.
In some cases, the bidders have other interests in these areas, such as rural telephone, or they can leverage their licenses to participate with large players. Some may be acquiring licenses now with an eye on upcoming PCS licensing.
Not all one-market players are seeking small-pop properties. Indus Inc., at round 90, was holding onto the Milwaukee, Wis., market (1.8 million pops) with a $60 million bid.
According to the Federal Communications Commission, the most active markets in round 90 were: Stroudsburg, Pa., eastern Pennsylvania bordering New Jersey (MFRI Inc. is high bidder), Lufkin, Texas (Wireless 2000, Inc.), the border town of Brownsville, Texas (Integrated Communications Group), Hot Springs, Ark. (Wireless 2000 Inc.), and Kalispell, Mont. (Mountain Solutions Ltd.).
Top bidders by dollar value were: NextWave, with 51 high bids and $4 billion net wagered; DCR PCS Inc., 38 high bids and $1.4 billion net bid; GWI PCS, 12 high bids and $1 billion net wagered; BDPCS Inc., 11 high bids and $825 million net bid; Omnipoint PCS Entrepreneurs Inc., 18 high bids and $506 million net bid.
The concurrent auction of specialized mobile radio licenses has gone 155 rounds, with net revenue reaching $203 million (excluding withdrawal payments).
