Curious cast of characters to vie for spectrum

Analysts speculate on 700MHz auctions

Industry analysis by expert Joanie Wexler, plus links to the day's wireless news headlines

We’ll know on Dec. 3 who has filed to bid in the January auctions for blocks of 700MHz U.S. spectrum, frequently called the “beachfront property” of wireless because of its excellent propagation characteristics.

Incumbents and newcomers alike will be vying for the spectrum, soon to be vacated by analog TV. Their agendas will range from protecting their existing voice-driven cellular turfs to shaking up the entire U.S. mobility model, say industry watchers.

For example, Google has indicated it might bid the full $4.6 billion minimum asking price for all 12 nationwide 22MHz licenses to be auctioned off in the C block with some open-access rules applying. Andy Seybold, principal at wireless consultancy Andrew Seybold Inc., said that if Google succeeds at that, it might turn around and do a deal with AT&T.

To continue reading, register here and become an Insider. You'll get free access to premium content from CIO, Computerworld, CSO, InfoWorld, and Network World. See more Insider content or sign in.

We’ll know on Dec. 3 who has filed to bid in the January auctions for blocks of 700MHz U.S. spectrum, frequently called the “beachfront property” of wireless because of its excellent propagation characteristics.

Incumbents and newcomers alike will be vying for the spectrum, soon to be vacated by analog TV. Their agendas will range from protecting their existing voice-driven cellular turfs to shaking up the entire U.S. mobility model, say industry watchers.

For example, Google has indicated it might bid the full $4.6 billion minimum asking price for all 12 nationwide 22MHz licenses to be auctioned off in the C block with some open-access rules applying. Andy Seybold, principal at wireless consultancy Andrew Seybold Inc., said that if Google succeeds at that, it might turn around and do a deal with AT&T.

AT&T quietly purchased 12MHz spectrum licenses covering 196 million people and 281 markets in the 700MHz frequency range last month from Aloha Partners, L.P. That spectrum—particularly alongside a possible deal with an auction winner—could allow it into the 700MHz arena without having to do battle at the auctions.

“22MHz is not enough for a robust network, but it is a great bargaining tool,” said Seybold, who was a panelist at a meeting of the Wireless Communications Alliance at Santa Clara University in Silicon Valley last week.

At the meeting, Seybold said that because the 700MHz networks “will be all IP, end to end, from the ground up,” the auctions might even appeal to the interests of IP companies such as Cisco.

Similarly, non-U.S. companies, such as Chinese 3G equipment makers Huawei and ZTE, “might come to the U.S. if Google or another incumbent get spectrum” and there’s a possibility of a deal, speculated Mike Thelander, CEO of wireless research and consulting firm Signals Research Group

He speculated that satellite operators and teams of operator and mobile handset makers might also appear at the bidding table.

For its part, Microsoft said at last month’s CTIA show that it prefers to partner with all the operators and doesn’t intend to bid on the spectrum.

Editor's note: Starting Nov. 19 week, you will notice a number of enhancements to Network World newsletters that will provide you with more resources and more news links relevant to the newsletter's subject. Beginning Monday, Nov. 12, the Wireless in the Enterprise Newsletter, written by Joanie Wexler, will be merged with the Wireless News Alert and will be named the Wireless Alert. You'll get Joanie's analysis of the wireless market, which you will be able to read in full at NetworkWorld.com, plus links to the day's wireless news and other relevant resources. This Alert will be mailed on Mondays and Wednesdays. We hope you will enjoy the enhancements and we thank you for reading Network World newsletters.

Read more about wireless & mobile in Network World's Wireless & Mobile section.

Joanie Wexler is an independent networking technology writer/editor in Silicon Valley.