Monday, January 24, 2022

Auction 108 2.5-GHz Spectrum for 5G and Alternative Investments

There is an older adage that spectrum always has value, adhered to by executives such as Charlie Ergen, Dish Network CEO. There might also be a new developing line of thinking, namely that mid-band spectrum licenses are potential alternative assets akin to roads, seaports, airports or real estate. 


Which is to say that, as part of a broader portfolio, spectrum licenses might produce a steady income stream, with competitive moats, even if equity growth is limited. 


Many T-Mobile 2.5-GHz spectrum licenses, for example, are leased from educational institutions and other investors. T-Mobile would ideally prefer to acquire such licenses and the Federal Communications Commission now allows the license holders to sell them.


It appears T-Mobile has been making purchase offers below what others believe the market value actually represents. 


And though its early 5G strategy is built on 2.5-GHz spectrum, T-Mobile appears to be seeking more access to such licenses expected as part of FCC Auction 108


The auction for mid-band spectrum in the 2.5-GHz band as part of Auction 108 has no set date, yet. Although the intended purpose of the auction is to free up more mid-band spectrum for 5G, the auction also allows institutional investors and private equity to acquire licenses as alternative investments.

No comments:

Post a Comment

Is Sora an "iPhone Moment?"

Sora is OpenAI’s new cutting-edge and possibly disruptive AI model that can generate realistic videos based on textual descriptions.  Perhap...