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The country’s largest wireless carriers dominated the Federal Communications Commission’s latest 5G spectrum auction, propelling revenues to a record price of over $ 81 billion. The FCC has released the names and winning bids of the top five bidders for auction on Wednesday.
Verizon, which was bidding under the name Cellco Partnership, spent the most on the auction, bidding a whopping $ 45 billion for 3,511 spectrum licenses. AT&T came in second with $ 23 billion for 1,621 licenses. T-Mobile had the third highest bid of $ 9 billion for 142 licenses.
The so-called C-band spectrum, which includes a 500 MHz spectrum between 3.7 and 4.2 GHz, has been used by satellite providers to deliver video programs to cable providers. The FCC began auctioning 280 MHz of the spectrum block in December and ended January 15. About 200 MHz of the spectrum in this band will still be used for TV programs.
Wireless experts had expected the midband spectrum auction to generate a lot of interest. Some had predicted that the valued spectrum could be worth as much as $ 60 billion. But the latest count blew through those predictions, raising more than $ 81 billion for the U.S. Treasury.
The high price tag and final winner list underscore the high value that the country’s largest wireless providers have placed on the midband spectrum to build their 5G networks.
5G is the next generation of wireless service, expected to increase network speeds and make networks more responsive. The technology could help realize applications such as autonomous vehicles and will provide new AR and VR experiences on smartphones.
Mid-band spectrum, such as the C-band, is considered important for 5G deployments as it provides both geographic coverage and the capacity to transmit large amounts of data. This combination is particularly attractive to wireless giants who have been trying to fill out their spectrum portfolios.
“It is vital to America’s economic recovery that we deliver on the promise of next-generation wireless services for everyone, everywhere,” Jessica Rosenworcel, acting president of the FCC, said in a statement. “This auction reflects a shift in our country’s approach from 5G to the midband spectrum capable of supporting fast, reliable and ubiquitous service that is competitive with our global competitors.”