Thursday, September 10, 2020

CBRS: Verizon Wanted Capacity; Dish Wanted Coverage

Verizon was the single biggest spender in the recent Citizens Broadband Radio Service priority access license auction, and its priorities are clear enough: dense urban markets. That was not the case for other bidders such as Dish Network, which bid on licenses in less-dense areas.


To use a version of the traditional mobile analogy, Verizon wanted capacity where its usage is heaviest, while Dish wanted coverage. Specifically, Verizon wanted more capacity in the urban areas where it has millimeter wave assets. Dish has lots of low-band spectrum, but needs more capacity across its entire footprint.


Verizon spent $1.9 billion on 557 licenses, while Dish Network (participating as Wetterhorn Wireless) shelled out $912.9 million for 5,492 licenses. 



source: JMA


source: JMA


Mobile service provider strategic priorities were clear enough at the conclusion of the Citizens Broadband Radio Service 3.5-GHz Priority Access License spectrum auction. Incumbent firms and new entrants who urgently needed more spectrum in the mid-band region--principally Verizon and Dish Network--were aggressive acquirers. 


Other firms with lots of existing mid-band spectrum--especially T-Mobile--barely participated. New entrants, including a few large cable TV companies, also were leading acquirers. 


Noticeable by its absence was AT&T, which did not win any licenses, and appears not to have bid at all. The strategy there seems to be to “go big” in the upcoming C-band auctions. Where the CBRS auction had 70 MHz of spectrum available, the C-band auction will feature 280 MHz of spectrum.


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