Pai Says C-Band Auction Shows That Carriers Value Midband for 5G
The FCC closed the first stage of the C-band auction Friday at $80.9 billion, not including about $13 billion in additional accelerated clearing payments (see 2101070048). All 5,684 spectrum blocks were sold. The FCC will next release the list of…
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winning bidders. “The winning bidders, at least, perceive … tremendous value in acquiring the C-band spectrum and monetizing it over the course of the coming years, through the deployment of 5G services within an accelerated time frame,” Chairman Ajit Pai said at an American Enterprise Institute event Friday. Asked whether the costs will cause difficulties for carriers in building out their networks, Pai said that’s “a very good question” and deferred “to economists and those in finance” who monitor carrier balance sheets. Pai said offering the band through a standard spectrum auction was the right course. “After months of back-and-forth with stakeholders, we had serious concerns about the plans that were submitted for the private sale and whether it would be run competently,” he said: “In contrast, the FCC had a quarter-century track record of performing successful and transparent spectrum auctions.” S&P Global Ratings said the auction “will have a significant effect on balance sheets for U.S. wireless operators.” The nationwide average price per MHz/POP across all categories was 94.2 cents, BitPath Chief Operating Officer Sasha Javid blogged Friday. That's about 4.3 times the 21.7 cent price per MHz/POP for the spectrum sold in the citizens broadband service auction, he said. The most expensive license was for Red Oak, Iowa, which closed at $2.835 MHz/POP, and the most expensive top 20 market was San Diego, at $1.773, he said. The auction offered 280 MHz, rather than the 65 MHz in the AWS-3 auction. “This is why total gross proceeds in this C-band auction skyrocketed past the $44 billion raised in the AWS-3 auction to become the highest gross auction of all time,” Javid said. “We have heard the term ‘beachfront’ used to describe various bands over the last several years," wrote Wiley’s Ari Meltzer. "The market has spoken, and it has confirmed that mid-band has the view and the amenities.” The auction “showcased the critical need of the mobile wireless industry to have access to an important portfolio of spectrum to support connectivity for citizens, the economy, and U.S. technology leadership,” said Chris Pearson, president of 5G Americas. “This record-breaking spectrum auction demonstrates the wireless industry’s commitment to leading the emerging 5G economy and underscores the importance of developing a robust pipeline of spectrum auctions,” said CTIA President Meredith Baker.