Cable giant Cox throws hat in 700 MHz auction ring: Comcast, Time Warner Cable remain on sidelines

Cox Communications Inc. said it will bid on wireless licenses when the 700 MHz auction kicks off Jan. 24, but two other cable TV giants in a wireless joint venture with Cox and others indicated they would sit this one out.
“I can confirm that we are a bidder in the auction. We have no further comment,” said David Grabert, director of media relations at Cox.
Cox is one of four top cable TV operators in a consortium that spent nearly $2.4 billion on 137 licenses at last year’s advanced wireless services auction. Sprint Next Corp. in August pulled out of SpectrumCo. L.L.C., the entity the bid on those licenses, but remains active in Pivot, a separate cable joint venture offering wireless and converged services that is currently available in 19 markets.
Other cable companies chose a different path.
“Comcast Corp. has decided not to bid in the 700 MHz wireless auction,” said D’Arcy Rudnay, senior VP of the leading cable company. “The 20 megahertz of spectrum acquired in the wireless auction last year with our cable partners in SpectrumCo provides us with significant long-term flexibility and many strategic options. We will continue to explore how wireless can complement our services through various partnerships and consumer trials.”
Time Warner Cable, another member of the cable-wireless venture, said it will not participate in the 700 MHz auction.
Meantime, startup Frontline Wireless L.L.C. said it filed a short-form application to bid in the 700 MHz auction. Frontline has shown particular interest in the national commercial-public safety license, which carries a $3.1 billion minimum bid. Frontline joins Internet search engine giant Google Inc. as a newcomer to wireless license competition.
“We are bidding to win and to build out a 4G network to meet the needs of public safety and other customers and to operationalize open access with a wholesale business model as a carrier’s carrier,” Frontline said in a statement. “Throughout this debate we have championed market-based solutions for public safety, wireless broadband competition and open access. We are now moving to the next phase of making these public interest goals a reality.”
Tom Watts, an analyst at Cowen and Co., said in a note that broad Federal Communication Commission anti-collusion rules will probably prevent satellite TV company EchoStar Communications from bidding on 700 MHz licenses. AT&T Inc., parent of the top U.S. mobile phone carrier, is reported to be in talks to acquire EchoStar.
The Federal Communications Commission is expected to publish a list of 700 MHz short-form applicants before the Dec. 28 auction down payment deadline.