Largest U.S. millimeter wave auction: Total bids have passed the $1.5 billion mark

The federal Communications Commission’s total bid for this week’s mmWave spectrum auction has passed the $1.5 billion mark, and the pace of auction activity has not slowed since Monday. This band will be used for 5G networks.

Stephen Wilkus, spectrum expert at spectrum financial partners, said bidders had increased bids by 10 per cent each in each of the last nine rounds of spectrum auctions at the FEDERAL Communications Commission up to 20%. He said the activity, which began Monday, had exceeded his expectations and the total bid appeared to be $3 billion.

However, Tim Farrar, an analyst at TMF Associates, points out that the total bid for the auction must be $7 billion to $8 billion to reach the same valuation as the FCC’s two previous mmWave spectrum auctions.

The Federal Communications Commission (FCC) sold $703 million for 101 auctions of 28GHz-band licences and $2 billion for 102 auctions of 24GHz-band licences. The Federal Communications Commission announced the results of this summer’s auction. The agency’s 103 auctions, which began monday, provided a staggering 3400mhz spectrum across the 37GHz, 39GHz and 47GHz bands – far more than the agency’s total of the two previous mmWave auctions.

As more spectrum enters the market, the overall demand for mmWave spectrum is declining. The Federal Communications Commission just took steps this week to use more spectrum for commercial purposes.

In the eighth round of the FEDERAL Communications Commission’s ongoing auction, the average price of a spectrum license was $0.00187 per MHz/POP, five times lower than the final price at the 24GHz spectrum auction earlier this year, said Wilkus of Spectrum Partners.

Largest U.S. millimeter wave auction: Total bids have passed the $1.5 billion mark

The final conclusion of the Federal Communications Commission’s ongoing auction no. 103 is that demand varies by location. Although the Federal Communications Commission did not disclose the identity of the bidders, it did disclose the specific license plates of the bidders. As the Federal Communications Commission divides spectrum licenses by geographic location, the event could show where 103 bidders compete for the mmWave spectrum license.

Not surprisingly, much of the spectrum’s demand is concentrated in the main metropolitan areas, while the demand for licences in rural areas is not high. In addition, as Wilkus points out, licences for Puerto Rico, the United States Virgin Islands, American Samoa and the Gulf of Mexico have not yet been tendered.

Largest U.S. millimeter wave auction: Total bids have passed the $1.5 billion mark

The Federal Communications Commission will announce the identities of the 103 bidders after the event. AtT, T-Mobile and Verizon bought most of the licenses for the FCC’s two previous mmWave auctions.

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