FCC 700MHz Auction Bidder List Nears Finalization

19^th Dec 07 – The list of bidders for the 700MHz spectrum that the FCC is auctioning off on January 24th is nearly complete. The FCC released a list today of these 266 bidders, who include ninety six accepted applications, and one hundred and seventy that they classify as incomplete.

 

The incomplete applications are ones that the FCC didn’t accept (they don’t specify the reasons); these companies have until the 4^th of January to revise and resubmit their applications. Somewhat oddly, most of the major telephone networks are on the incomplete lists; Alltell, AT&T and Verizon (under the name Cellco partnership) were all on the incomplete list, indicating that there was something about their application that the FCC didn’t like. There was no indication that T-Mobile or Sprint were planning to bid in this spectrum auction.

 

The auction is for a chunk of the wireless frequency spectrum that will be freed up by turning off analog TV signals, and it is eagerly anticipated by companies looking to offer wireless services. This is because signals in the 700MHz frequency band travel a long distance, meaning that fewer cell towers would be needed to cover an area.

 

One interesting name on the list is Vulcan Spectrum, LLC, a company owned by Microsoft co-founder Paul Allen. He has not previously invested in wireless ventures, but he may be looking to move into this area with this bid.

 

Google was on the list, though; Google Airwaves, Inc (a subsidiary of Google) was listed as an accepted bidder. Other companies listed include cell phone manufacturers Qualcomm, cable company Cox (through their subsidiary Cox wireless), oil giant Chevron and the regional cell network Metro PCS.  A large number of regional telecoms companies and cooperatives are also listed as bidders, but these companies are likely to be bidding on some of the smaller chunks of the frequency spectrum that is up for grabs; they aren’t likely to be bidding against Google or Verizon.

 

The next step is that the incomplete applicants have to finish their applications, then all of the bidders have to make upfront payments to the FCC by the 4^th of January. The auction itself happens on the 24^th of January, with a mock auction happening two days before so that bidders know the process.