WASHINGTON-Nextel Communications Inc. is on its way to a rout in the 800 MHz specialized mobile radio auction, leading its closest competitor in the race for licenses by nearly $29 million.
Gross revenues for the auction have been rising steadily at about $1 million per round, with press time net figures of $41.8 million at the end of round 41. There have been some setbacks due to changes in high bids and players departing the game.
The top two high-cost markets continue to be the New York City and Puerto Rico/Virgin Islands C blocks, bringing in $1.2 million and $1 million in respective bids thus far.
Nextel, which has led the auction since day one, is estimated to win at least 80 percent of the 525 licenses up for sale. This is good for Nextel, but potentially disastrous for smaller entities that will compete against it. One operator already has begun referring to Nextel as “the landlord.”
The universe of bidders has been cut in half from the original 62 when the auction began Oct. 28. Those departing the auction during the course of last week included: APW Electronics Inc., Arthur Patrick dba Lawton Communications, Bay Electronics Inc., C&W Communications Inc., Castle Tower Inc., Clark Communications Inc., ComServ Inc., Communications Equipment Co. L.L.C., Communications Maintenance Inc., Domer Communication Inc., Electronic SMR Communication Services L.P., Ganacias Enterprises Inc. dba RadioCom, Mountain Communications, New Spectrum Partnership L.P., Northeast Communications of Wisconsin Inc., Omega Cellular Partners, Platte Valley Communications of Kearney, Puri Capital Corp., Radio-Comm Services Inc., Reidy Rhodes & Taylor Inc., Team Electronics, STC Netcom Inc., Stone’s Mobile Radio Inc., Telebeeper of New Mexico Inc., The Alpha Group L.L.C. and Western Communications Inc.
While no one will be able to come near Nextel for the top auction spot, there had been significant jockeying for position in the rest of the top 10 bidders. As of round 41, the top 10 players in order of dollars committed were Nextel, North Site Communications, Racom Corp., Southern Co., HTC Communications, Hawaiian SMR Co., Porta-Phone Paging Licensee Corp., Mountain SMR Group and Alaska Independent Radio Communications L.L.C. dba AirCom.
Dollar-wise, Racom Corp. had been in second place all week, with double-digit millions separating it and Nextel at any given time. North Site stayed in third place, close behind Racom.
The rest of the spots have been traded between Southern Co., High Tech Communications, Nevada Wireless, Hawaiian SMR Co., Chariton Valley Communications, Mountain SMR Group, Mobex Communications Inc., Redbank Communications, HTC Communications, Silver Palm Communications Inc., Mid-State Wireless Inc. and Communications Pacific Inc. Nevada Wireless staged its surprising entry into the top 10 during round 38, when it held 21 high bids.
In other auction news, C-block winner Mercury PCS II L.L.C. finally was awarded its last nine licenses after a long battle with High Plains Wireless L.P. over allegations of bid signaling. The FCC and Department of Justice continue to investigate other instances of possible bid signaling during all the spectrum auctions.
