WASHINGTON-Perhaps denoting that local multipoint distribution service and the tremendous data possibilities it affords may be the wave of the future, the LMDS re-auction already seems more successful than the recently concluded PCS re-auction.
While the PCS sale left some licenses still unclaimed after many auctions and much controversy, all of the 161 LMDS licenses received bidding activity up through round six. Indeed, Rocky Mount-Wilson N.C., was the only license that did not receive action in rounds five or six, with Command Connect L.L.C.’s bid of $20,000 still on the table at the end of round four. Command Connect is partially held by US Unwired Inc.
The Federal Communications Commission’s Wireless Telecommunications Bureau was pleased at the prospects of the LMDS auction, with one senior WTB official announcing to reporters, “It was the largest auction in terms of eligibility.” Indeed, WTB Deputy Bureau Chief Gerald Vaughan said the auction was hot.
Only one eligible bidder, Pinpoint Communications Inc., has dropped out, said an FCC spokeswoman.
At the end of round six, San Juan, Puerto Rico, was the most valuable A-block (1,150 megahertz) property, with LMDS Ventures bidding $237,050. Reno, Nev., was the most valuable B-block (150 megahertz), with ABC-LMDS L.L.C. bidding $111,650. Mario Gabelli, chairman and CEO of Gabelli Funds Inc., is a primary investor in ABC-LMDS.
Hyperion Communications Long Haul L.P. has been the most active up through round six, bidding $1.38 million for 35 licenses.
In other LMDS news, the Wireless Communications Association said Friday that it and the Personal Communications Industry Association have met with the FCC to see if the commission should extend the cross-ownership rule for LMDS A-block licenses.
The FCC is seeking voluntary answers to a one-page list of questions from nine licensees and manufacturers, said WCA President Andrew Kreig. The questions included “such sensitive areas as descriptions of business plans and reasons for not deploying services more rapidly,” Kreig added.
In an effort to spur competition, incumbent local exchange carriers and cable companies were prohibited from buying A-block licenses without a waiver. This cross-ownership rule is slated to sunset in June 2000.
