FCC Reduces Clearing Prices for 600-MHz Spectrum

The U.S. Federal Communications Commission (FCC), recently reduced the clearing target price of 600 MHz mobile spectrum being auctioned.

It perhaps is a bit anecdotal, but that means seller expectations were too high, in terms of price. And that might not be the only indication that spectrum prices are poised to decline. In most markets, that will be because huge new amounts of licensed spectrum will be made available as part of the transition to 5G.

In most cases, unlicensed spectrum also is playing a bigger role, allowing users and providers to use spectrum assets without paying for them. In some instances, new ways of sharing spectrum also will have an impact.

As with prices in any market, for any product, greater supply tends to reduce price. Vastly-greater supply can vastly reduce prices.

That might be part of a developing trend, as the recent Indian spectrum auction likewise resulted in 58 percent of the resources not being sold.

Also, recent spectrum valuation by Sprint suggests a wide valuation gap.