AT&T spent $9B on midband spectrum for 5G – analysts


Two separate monetary analyst corporations predict that AT&T was the large winner within the FCC’s latest public sale of midband spectrum. And each corporations imagine the service spent round $9 billion on spectrum licenses within the public sale.

If AT&T did certainly spend $9 billion, it will cap an costly yr for the corporate. AT&T already spent a complete of round $27.7 billion on C-band spectrum licenses earlier this yr.

Thus, if the analysts’ predictions are correct, AT&T over the course of 2021 might find yourself spending a complete of $36.7 billion on midband spectrum licenses. That is just below half of the $85 billion AT&T spent to accumulate Time Warner in 2018.

Importantly, all that spending ought to offer AT&T entry to a large swatch of midband spectrum, which the operator can use to enhance the velocity and efficiency of its rising 5G community. Such spectrum has been described as best for 5G.

Nonetheless, the FCC has not but recognized the profitable bidders of its latest public sale of midband spectrum licenses between 3.45GHz and three.55GHz, an public sale the company has dubbed Public sale 110. The public sale ended earlier this week with round $21.9 billion in profitable bids. The FCC is predicted to launch the id of the winners of the public sale someday in December, or presumably January.

Gentle Studying has dubbed Public sale 110 because the “Andromeda public sale” as a result of it sounds cool.

“We nonetheless imagine AT&T would be the highest bidder in Public sale 110 (~$9 billion), adopted by a steep drop-off to Verizon (~$5 billion), after which once more to Dish Community and T-Cellular (~$2 billion every),” wrote the monetary analysts at Raymond James in a notice to buyers this week.

Nonetheless, they famous that Dish would possibly find yourself spending greater than $2 billion given its latest $5.25 billion in fundraising.

“We count on AT&T spent almost $9 billion,” agreed the monetary analysts at New Avenue Analysis in a latest notice to buyers. They added that T-Cellular possible walked away with $8 billion in licenses, and Dish might have spent between $4 billion and $6 billion.

Nonetheless, the New Avenue analysts speculated that there is a “slim likelihood” that T-Cellular gained nothing and that Verizon spent closely within the public sale. However they stated that might be a “massive shock.”

In spite of everything, Verizon spent near $50 billion on midband spectrum licenses earlier this yr within the FCC’s C-band public sale of midband spectrum for 5G. But it surely’s value noting that these licenses are actually twisted up in a squabble over interference issues between the FCC and the Federal Aviation Administration (FAA).

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— Mike Dano, Editorial Director, 5G & Cellular Methods, Gentle Studying | @mikeddano


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