Design World

  • Home
  • Technologies
    • 3D CAD
    • Electronics • electrical
    • Fastening & Joining
    • Factory automation
    • Linear Motion
    • Motion Control
    • Test & Measurement
    • Sensors
    • Fluid power
  • Learn
    • Ebooks / Tech Tips
    • Engineering Week
    • Future of Design Engineering
    • MC² Motion Control Classrooms
    • Podcasts
    • Videos
    • Webinars
  • LEAP AWARDS
  • Leadership
    • 2022 Voting
    • 2021 Winners
  • Design Guide Library
  • Resources
    • 3D Cad Models
      • PARTsolutions
      • TraceParts
    • Digital Issues
      • Design World
      • EE World
    • Women in Engineering
  • Supplier Listings

Analyst: As AWS-3 Auction Hits $24B, Dish Soars, T-Mobile Likely Out

By Ben Munson | November 20, 2014

Share

The FCC’s AWS-3 auction has rocketed past its $10 billion reserve price and surpassed $24 billion in bids after only five days.

The rapid pace at which the auction is climbing helped spur a 10 percent rise in Dish Network’s stock Wednesday. Dish holds 40 MHz of nationwide AWS-4 spectrum—which some analysts estimate is more valuable than the AWS-3 currently being auctioned.

BTIG analyst Walter Piecyk previously valued Dish at $85 per share and its spectrum at $1.50/MHz/POP but given the rate at which the AWS-3 auction is going, he’s increased his implied valuation to $104 per share and $2.00/MHz/POP. Piecyk also notes that at $2.50/MHz/POP, Dish would have an implied value of $122 per share.

In the same note, Piecyk estimates that T-Mobile is likely no longer participating in the AWS-3 auction in a “meaningful way,” given how high the prices have risen and the carrier’s expressed intent to focus on acquiring low-band spectrum.

That would leave AT&T, Dish and Verizon as the largest active participants. Still, given the potential financial effect such a costly bidding war could have for the winners, AT&T, T-Mobile and Verizon all saw their shares slide a little on Wednesday.

Shares of Dish Network are up almost $5 since the auction began. Anticipation that Dish is adding to its already impressive cache of nationwide AWS-4 airwaves is pushing the company one step closer to entering the ring with major wireless carriers. 

Given that T-Mobile already has its own stockpile of AWS spectrum, the two are continually talked about as a match made in heaven. Dish arguably needs a carrier partner to make use of its spectrum, and T-Mobile needs more spectrum to fill in the gaping holes in its coverage. 

Deutsche Telekom CEO Timotheus Hoettges said yesterday during a Morgan Stanley investor conference that T-Mobile remains an attractive acqusition target for many companies, Dish Network included. While, Hoetgges said that does not mean the company has to stage a fire sale of T-Mobile, he referred to the Uncarrier as a growth stock with a lot of options. 

The comments only fanned the flames of a possible Dish/T-Mobile tie-up. As Bloomberg points out, reports were already surfacing in September that Dish Chairman Charlie Ergen said he might be interested in making an offer for T-Mobile after the AWS-3 auction ends. 

The AWS-3 auction will continue until the bids stop increasing. As BTIG points out, the FCC yesterday said it would put a $50 million limit on increases in minimum acceptable bid amounts over provisionally winning bids. This change kicks in today with round 20.


Filed Under: Industry regulations

 

Related Articles Read More >

ids-industrial-camera-manufacturer.sustainability-3
IDS focuses on sustainability in shipping
Part 5: Motion control + MQTT, OPC-UA, and other protocols for cloud services
Facebook CEO Zuckerberg Calls for More Outside Regulation
Musk’s Boring Company Calls it Quits on LA Tunnel, Instead Focuses on Hyperloop

DESIGN GUIDE LIBRARY

“motion

Enews Sign Up

Motion Control Classroom

Design World Digital Edition

cover

Browse the most current issue of Design World and back issues in an easy to use high quality format. Clip, share and download with the leading design engineering magazine today.

EDABoard the Forum for Electronics

Top global problem solving EE forum covering Microcontrollers, DSP, Networking, Analog and Digital Design, RF, Power Electronics, PCB Routing and much more

EDABoard: Forum for electronics

Sponsored Content

  • Global supply needs drive increased manufacturing footprint development
  • How to Increase Rotational Capacity for a Retaining Ring
  • Cordis high resolution electronic proportional pressure controls
  • WAGO’s custom designed interface wiring system making industrial applications easier
  • 10 Reasons to Specify Valve Manifolds
  • Case study: How a 3D-printed tool saved thousands of hours and dollars

Design World Podcasts

May 17, 2022
Another view on additive and the aerospace industry
See More >
Engineering Exchange

The Engineering Exchange is a global educational networking community for engineers.

Connect, share, and learn today »

Design World
  • Advertising
  • About us
  • Contact
  • Manage your Design World Subscription
  • Subscribe
  • Design World Digital Network
  • Engineering White Papers
  • LEAP AWARDS

Copyright © 2022 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search Design World

  • Home
  • Technologies
    • 3D CAD
    • Electronics • electrical
    • Fastening & Joining
    • Factory automation
    • Linear Motion
    • Motion Control
    • Test & Measurement
    • Sensors
    • Fluid power
  • Learn
    • Ebooks / Tech Tips
    • Engineering Week
    • Future of Design Engineering
    • MC² Motion Control Classrooms
    • Podcasts
    • Videos
    • Webinars
  • LEAP AWARDS
  • Leadership
    • 2022 Voting
    • 2021 Winners
  • Design Guide Library
  • Resources
    • 3D Cad Models
      • PARTsolutions
      • TraceParts
    • Digital Issues
      • Design World
      • EE World
    • Women in Engineering
  • Supplier Listings