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

FCC Auction Hits First Benchmark, But Still A Long Way From Over

By Diana Goovaerts | August 25, 2016

Share

The FCC’s forward spectrum auction on Wednesday evening hit its first benchmark, but analysts have indicated the proceedings are still far from over.

At the close of Round 15, the auction cleared its first final stage target of $15.9 billion in auction proceeds with a total of $16.4 billion in actual proceeds.

However, bidding remained pitifully short of the satisfying the second final stage price target of $88.4 billion in net proceeds, coming in at just $15.7 billion.

Though there is no limit to the number of bidding rounds in the forward auction and bid prices are rising five percent each round, analysts have been skeptical carrier bids will hit the $88.4 billion mark in one stage.

Dan Hays, a Principal with PwC’s Strategy& consulting group, said hitting the first FCC benchmark was an important milestone for the auction but noted there is still likely a long way to go before the auction is over.

“Satisfying the first component of the auction’s final stage rule is an important waypoint en route to a successful auction outcome,” Hays said. “In crossing this hurdle, the auction demonstrates that it can at least meet the minimum price per unit of spectrum required by the auction rules. Despite this achievement, the auction remains far from finished. We still expect that a second stage of both the reverse and forward auctions – at a minimum – will be likely required to satisfy the second component of the final stage rule and cover the full proceeds and costs of the auction.”

Over the remaining course of the first round, Hays said growth in auction proceeds is expected to taper off. Though there’s no way to tell for sure, Hays said Stage 1 of the auction could come to an end as early as the beginning or middle of September.

Hays’ comments are in line with predictions from BTIG’s Walter Piecyk, who earlier this week said the proceedings could enter into a Stage 2 reverse auction as soon as early October.

Piecyk said it could take around four stages for the net proceeds target set by the reverse auction to drop low enough for forward auction bidders to meet. The amount of available spectrum would drop to 70 MHz by the fourth round.

If the auction does run into a fourth stage, Piecyk said bidding in the final forward auction could run into March 2017.

As of Thursday morning, bidding in the top three markets remained strong, with aggregate demand for spectrum holding at well more than double the available amount in all three markets.


Filed Under: Telecommunications (Spectrum)

 

Related Articles Read More >

HH-Hood-Latch_Image
Southco’s ultra-thin hood latch for limited-space applications
Flying Focus: Controlling Lasers Through Time and Space
AT&T Scoops Up More Spectrum in Mexico at 2.5 GHz Auction
Tuesdays with Roger: New Millimeter Wave Spectrum Auctions

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