Three public cable TV companies will sit out a government 5G spectrum auction while satellite TV broadcaster Dish Network (DISH) and three national wireless firms have registered as bidders.
XThe Federal Communications Commission plans to hold the 5G spectrum auction on Nov. 14. The high-frequency airwaves, suitable for next-generation 5G wireless services, exist mostly in rural areas. The largest single market with airwaves available in the 5G spectrum auction is Honolulu, says a Morgan Stanley report.
The FCC released the potential bidder list for the upcoming auction of 24-gigahertz and 28-gigahertz spectrum late Wednesday.
"It's difficult to handicap how active bidders plan to be in this auction as wireless operators' upfront payments have not been disclosed," BTIG Research analyst Walter Piecyk said in a note to clients.
AT&T (T) and Verizon Communications (VZ), which already have amassed high-frequency airwaves for next-generation 5G services, have registered to take part in the FCC auction.
So has T-Mobile US (TMUS), which is seeking approval to merge with Sprint (S).
Most Big Cable TV Firms Out
Dish Network is expected to participate through a partner, Crestone Wireless.
Cable TV firms Comcast (CMCSA), Charter Communications (CHTR) and Altice (ATUS) did not register for the auction. Privately held Cox Communications, the third-biggest cable TV firm, did sign up.
The available radio spectrum covers only one-quarter of the U.S. territory. Cable TV companies operate in mostly urban and suburban markets, less so in rural areas.
Verizon Already Owns 5G Airwaves
Verizon already owns much of the spectrum in 24-gigahertz and 28-gigahertz bands through its acquisition of XO Communications in early 2017. New York-based Verizon has been testing 5G video services to homes using high frequency radio spectrum.
With the potential bidders known, the FCC has set a quiet period that prevents participating companies from negotiating on wireless matters.
"We would expect Dish to be opportunistic, but they are unlikely to spend much given their existing holdings and their balance sheet constraints," said Jonathan Chaplin, analyst at New Street Research, in a report.
Dish already owns mid-frequency spectrum but has been unable to partner with one of the big four national wireless firms. Dish stock fell 3.6% to 31.87 on the stock market today.
Verizon stock lost 1.8% to close at 53.33.
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The post Potential Bidders In 5G Spectrum Auction Include Verizon, AT&T, Dish, Cox appeared first on Investor's Business Daily.
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