WASHINGTON-With net revenues reaching $2.14 billion at the end of Round 100 of the Federal Communications Commission’s D-, E-and F-block personal communications services auction, SprintCom Inc. and AT&T Wireless PCS Inc. continue to solidify their nationwide footprints, even with as few as 10 megahertz of space in some markets.
Another big player, Pocket Communications Inc., formerly DCR PCS Inc., finally got the go-ahead to start constructing its C-block empire.
SprintCom and AT&T Wireless have committed $533.8 million and $332.9 million, respectively, thus far in the bidding process, with the former holding 174 high bids and the latter holding 232.
According to Taylor Simmons of Simmons Associates, AT&T has been able to garner “many, many, many” markets at bargain prices. In fact, he said, “in the markets that AT&T splits with another bidder, they tend to be paying much less for their block. Go figure.”
For example, AT&T has bid $2 million for the San Diego D block; $1.2 million for the Pittsburgh D block; $554,000 for the Kansas City E block; $4.3 million for the Milwaukee D block; $2.9 million for the San Antonio E block; $1.5 million for the Indianapolis D block; $667,000 for the Oklahoma City E block; $2.2 million and $1.6 million for the Hartford, Conn., D and E blocks; $586,000 for the Rochester E block; and $1.1 million for the Albany-Schenectady D block.
SprintCom has gotten some good deals as well, bidding $3 million and $2.6 million for the Columbus, Ohio, D and E blocks; $3.5 million for the Memphis D block; $5.6 million for the Orlando D block; $2.3 million for the Greensboro-Winston-Salem, N.C., D block; $1.8 million for the Dayton-Springfield, Ohio, D block; $2.1 million for the Richmond-St. Petersburg, Va., D block; and $2.8 million for the Raleigh-Durham, N.C., D block.
As of the centennial round, Simmons said total eligibility is down to 106 percent, and total active pops are below 105 percent, “which means that less than 5 percent of all pops are being contested.” Detroit and Houston appear to be hot action spots.
“There is much interest in certain basic trading areas whose high bids have been withdrawn,” he continued. “Overall, the D-, E- and F-block auction has seen a far greater proportion of withdrawals than have earlier auctions. This is due in part to the picking and choosing many bidders are doing in this auction’s buyers’ market.”
C-block winner Pocket Communications breathed a sigh of relief last week when the Wireless Telecommunications Bureau granted its 43 licenses, at the same time rejecting a petition to deny filed by National Telecom PCS Inc. against Pocket regarding bidding, ownership, financing and stockholder issues.
The FCC said NatTel’s participation in the C-block auction was severely limited by its upfront payment of only $50,000.
