The Federal Communication Commission’s Auction 73 picked up this morning where it left off on Friday with new bids continuing to slowly shrink and new potential winning bid amounts adding smaller amounts to the auction’s total purse.
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Through three rounds this morning, new potential winning bids added just over $42 million to the government’s coffers, with total potential winning bids standing at $19.271 billion after round 54. The 700 MHz licenses up for grabs received 148 new bids in round 52, 144 new bids in round 53 and 139 bids in round 54. Three more rounds of bidding are scheduled for later today.
Most licenses still in play drew only single bids through the early rounds today with only a handful receive multiple bids during any of the rounds. According to Optimal Markets Inc., the only licenses drawing more two bids per round today included the B-Block license covering Kankakee, Ill.; and E-Block licenses covering Aberdeen, S.D.; Cedar Rapids, Iowa; and Columbia, Mo. E-Block licenses covering the New York City area and the Los Angeles area continued to be the largest contributor to the auction’s bottom line with new bids on the L.A. license during rounds 52 and 53 attracting nearly $5 million in new money per round, and the N.Y. license attracting nearly $5 million in round 54.
While bidders continue showing interest in the A-, B- and E-Block licenses, the FCC seems resigned to the fact that the national commercial-public safety D-Block license might not reach its $1.3 billion reserve price.
“We know that only the D Block may not sell in this auction,” said John Dingell (D-Mich.), chairman of the Committee on Energy and Commerce. “The construction of a nationwide, next-generation, interoperable broadband network for public safety is a crucial policy objective, and the need for such a network has not diminished. I intend to work closely with the commission, public safety and industry as this process continues.”
Just last week, FCC Chairman Kevin Martin held out hope that someone would come in and bid the reserve price for the D Block, which stood with a potential winning bid of $472 million it received during the opening round of the auction.
Medley Global Advisors L.L.C. noted in a report that with the auction nearing the $20 billion mark in potential proceeds, the FCC should have some “flexibility to take its time and consider all options before pursuing any contingency plans for the D-Block license. Similarly, it also gives the FCC some wiggle room to reduce the reserve price for the D Block as a way of attracting bidders when and if it gets re-auctioned.”
