Wireless Providers Poised to Win Spectrum Licenses (big guys to win again)

[NVMojo]

August 28, 2006

When the government’s multibillion-dollar auction of radio spectrum licenses began two weeks ago, it looked as if newcomers might get the chance to buy their way into the mobile phone business, leading to more choices for consumers.

But now the country’s biggest cellular providers appear poised to win many of the 1,122 licenses up for auction, allowing them to expand their reach and reducing the chance that a new entrant might bring down prices.

At the same time, cable companies like Time Warner and Comcast have teamed up with Sprint Nextel to bid on chunks of spectrum to expand their limited presence in the wireless business. Analysts said the cable companies were likely to use the spectrum to offer wireless Web access, not necessarily phone service.

Of the $13.3 billion in bids registered thus far, $2.2 billion has come from the cable providers, bidding together in a consortium with Sprint, the third-largest cellular carrier. But about 60 percent of the total bids have come from Cingular, Verizon Wireless and T-Mobile, the first-, second- and fourth-largest cellphone companies. T-Mobile has bid nearly $4 billion, mostly for licenses in major metropolitan areas, while Cingular and Verizon have sought licenses that cover broader regions.

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http://www.nytimes.com/2006/08/28/technology/28spectrum.html?dlbk