Design World

  • Home
  • Technologies
    • ELECTRONICS • ELECTRICAL
    • Fastening • joining
    • FLUID POWER
    • LINEAR MOTION
    • MOTION CONTROL
    • SENSORS
    • TEST & MEASUREMENT
    • Factory automation
    • Warehouse automation
    • DIGITAL TRANSFORMATION
  • Learn
    • Tech Toolboxes
    • Learning center
    • eBooks • Tech Tips
    • Podcasts
    • Videos
    • Webinars • general engineering
    • Webinars • Automated warehousing
    • Voices
  • LEAP Awards
  • 2025 Leadership
    • 2024 Winners
    • 2023 Winners
    • 2022 Winners
    • 2021 Winners
  • Design Guides
  • Resources
    • Subscribe
    • 3D Cad Models
      • PARTsolutions
      • TraceParts
    • Digital Issues
      • Design World
      • EE World
    • Educational Assets
    • Engineering diversity
    • Trends
  • Supplier Listings
  • Advertise
  • Subscribe

Auction Creeps Past $22B as Aggregate Demand Plummets in Top Markets

By Diana Goovaerts | August 30, 2016

Could the end be near?

The net proceed figure for the FCC’s forward spectrum auction on Tuesday crept past $22 billion as aggregate demand dropped to equal supply in most of the nation’s top markets.

As of the close of the first round of bidding on Tuesday morning, the auction pulled in $22.3 billion of the necessary $88.4 billion in net proceeds.

At the end of Round 25, demand outstripped supply in just two of the top 25 markets in the country, marking a stark contrast from earlier rounds of bidding where aggregate demand for the top three markets was exponentially higher than supply. The holdouts in the top 25 were Los Angeles, Calif., where aggregate demand for eight blocks surpassed the actual supply of five blocks and Cleveland, Ohio, where there remained demand for five blocks where only one is available.

Out of all 416 markets after Round 25, BTIG’s Walter Piecyk noted just 24 had more demand than supply.

In a blog post, TMF Associates President Tim Farrar speculated that the dramatic change in demand came courtesy of a major bidder who was previously trying to drive up prices but is now trying to limit its exposure in the auction. According to Farrar’s analysis of bidding habits, that bidder is likely Dish Network.

“(In Round 24) a bidder dropped 2 blocks in New York and 3 blocks in Los Angeles, without moving this eligibility elsewhere, somewhat similar to what happened on Friday, when one or more bidders dropped 5 blocks in Chicago, 3 blocks in New York and 1 block in Los Angeles during Round 20.” Farrar wrote. “However, a key difference is that a significant fraction of the bidding eligibility that moved out of NY/LA/Chicago during Round 20, ended up being reallocated to other second and third tier markets, whereas in Round 24, total eligibility dropped by more than the reduction in eligibility in New York and Los Angeles. It is natural that a bidder such as T-Mobile (or Comcast) would want licenses elsewhere in the country if the top markets became too expensive, whereas if DISH’s objective is simply to push up the price, then DISH wouldn’t necessarily want to bid elsewhere and end up owning second and third tier markets.”

Between Rounds 24 and 25, demand dropped dramatically again in the top two markets of New York, N.Y. and Los Angeles, Calif., dipping from aggregate demand of 17 and 12 blocks, respectively, to demand for 10 and 8 blocks, respectively.

Farrar said the most recent change “very likely means that Dish has given up” and Stage 1 of the auction will soon close. Bidding in the auction is scheduled to drop down to two rounds on Friday with a full suspension of bidding on Monday in observance of the Labor Day holiday. Regular bidding in three one-hour rounds per day is slated to resume on Sept. 6.

Previous estimates from Piecyk and others suggested Stage 1 of the auction could run through the end of September, with a Stage 2 reverse auction beginning in early October.  

Both Piecyk and Farrar, however, have forecast it will likely take up to four stages to bring the broadcasters’ price benchmark in line with forward auction bidding. In Stage 4 of the auction only 70 MHz of spectrum would be available.

You Might Also Like


Filed Under: Telecommunications (spectrums)

 

LEARNING CENTER

Design World Learning Center
“dw
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, tools and strategies for Design Engineering Professionals.
Motor University

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

  • Widening the scope for machine tool designers with FORTiS™ enclosed encoder
  • Sustainability, Innovation and Safety, Central to Our Approach
  • Why off-highway is the sweet spot for AC electrification technology
  • Looking to 2025: Past Success Guides Future Achievements
  • North American Companies Seek Stronger Ties with Italian OEMs
  • Adapt and Evolve
View More >>
Engineering Exchange

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

Connect, share, and learn today »

Design World
  • About us
  • Contact
  • Manage your Design World Subscription
  • Subscribe
  • Design World Digital Network
  • Control Engineering
  • Consulting-Specifying Engineer
  • Plant Engineering
  • Engineering White Papers
  • Leap Awards

Copyright © 2025 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
    • ELECTRONICS • ELECTRICAL
    • Fastening • joining
    • FLUID POWER
    • LINEAR MOTION
    • MOTION CONTROL
    • SENSORS
    • TEST & MEASUREMENT
    • Factory automation
    • Warehouse automation
    • DIGITAL TRANSFORMATION
  • Learn
    • Tech Toolboxes
    • Learning center
    • eBooks • Tech Tips
    • Podcasts
    • Videos
    • Webinars • general engineering
    • Webinars • Automated warehousing
    • Voices
  • LEAP Awards
  • 2025 Leadership
    • 2024 Winners
    • 2023 Winners
    • 2022 Winners
    • 2021 Winners
  • Design Guides
  • Resources
    • Subscribe
    • 3D Cad Models
      • PARTsolutions
      • TraceParts
    • Digital Issues
      • Design World
      • EE World
    • Educational Assets
    • Engineering diversity
    • Trends
  • Supplier Listings
  • Advertise
  • Subscribe
We use cookies to personalize content and ads, to provide social media features, and to analyze our traffic. We share information about your use of our site with our social media, advertising, and analytics partners who may combine it with other information you’ve provided to them or that they’ve collected from your use of their services. You consent to our cookies if you continue to use this website.