Page 132 - SAMENA Trends - July-August 2022

REGULATORY & POLICY UPDATES SAMENA TRENDS

FCC 2.5GHz Auction Ends with $428M in Bids

The US Federal Communication Commission’s (FCC) 2.5GHz spec- to bid because T-Mobile US already owns or leases large portions
trum auction wrapped up today (29 August) after $427.8 million of Educational Broadband Service (EBS) 2.5GHz spectrum. “With
was raised across 73 rounds of bidding, but it could be a week or only one well-heeled serious bidder who has an incentive to use
so before the results are released. The winning bidders will be re- the licenses, it was always clear the auction results were going to
vealed when the FCC releases a public notice that provides details be a bargain for T-Mobile,” said Recon Analytics analyst Roger En-
about where each bidder won licenses in the auction, according to tner in an email to Mobile World Live (MWL). “Other bidders had
BitPath COO and auction analyst Sasha Javid. The money raised only a chance of winning when T-Mobile did not want the license.”
was a far cry below the amount some analysts had predicted prior The auction, which the FCC called Auction 108, was comprised of
to the auction’s start on 29 July. Blair Levin, policy adviser for New- 8,017 county-based overlay licenses in the 2.5GHz band. Auction
street Research, previously estimated the auction could raise be- 108 covered blocks in 49.5MHz, 50.5MHz and 17.5MHz in each
tween $1.5 billion and $5.5 billion, but there was little incentive for county, with licenses mostly in rural areas.
other mobile operators, such as Verizon, AT&T and Dish Network,

Two Subcommittees Vote Against True-DTAC Merger

Two out of the four subcommittees set up by telecoms regulator January 2022, with the deal approved by their respective boards
the National Broadcasting and Telecommunications Commission in February. TeleGeography notes that DTAC and True Corp first
(NBTC) to assess the impact of the planned merger of True Cor- agreed to combine their operations in November 2021. The initial
poration and Total Access Communication (DTAC) have voted merger plan was approved by their respective executive boards on
against the deal, the Bangkok Post writes citing a source close to 19 November, with the duo inking a memorandum of understand-
the regulator’s board. The law subcommittee voted 10-1 against ing (MoU) on 22 November for an equal partnership to form a new
the merger and the consumer protection panel voted 6-2 against merged firm which will apply to be listed on the Stock Exchange
the deal with two abstentions, the source said. True and DTAC sub- of Thailand (SET). The deal is worth an estimated USD8.6 billion.
mitted the notification of their planned merger to the NBTC on 25

T-Mobile Spends USD3.5bn on Additional 600MHz 5G Spectrum

T-Mobile US has agreed to buy 600MHz mobile frequency licenses Co. Deal closure is expected within 180 days of regulatory approval
from two companies controlled by Columbia Capital covering (pending), with T-Mobile anticipating a date in mid-to-late-2023.
approximately one-third of the US population for a total of USD3.5 The 600MHz spectrum licenses range from 10MHz to 30MHz per
billion. The licenses were already being utilized by T-Mobile’s 5G market and cover parts of major cities including San Francisco,
network via exclusive leasing arrangements. T-Mobile disclosed Atlanta, Chicago, Los Angeles, Boston, Tampa, Columbus,
the purchase agreements to the US Securities and Exchange Minneapolis, Seattle, Philadelphia, Baltimore, Washington DC,
Commission on 8 August 2022, wherein it agreed to pay USD1.9 Dallas, Phoenix, Houston, Salt Lake City, Saint Louis and New
billion to Channel 51 License Co and USD1.6 billion to LB License Orleans. The 600MHz spectrum underpins the T-Mobile ‘Extended
Range 5G’ service currently covering 95% of the US population.
T-Mobile was the biggest spender in the 600MHz nationwide
auction completed in February 2017, paying USD8.0 billion for 1,525
regional licences, ahead of DISH Network which bid USD6.2 billion
for 486 licenses. Channel 51 paid USD859 million for eight licenses
at the auction, while in December 2017 LB License bought AT&T’s
entire 600MHz allocation (after AT&T had bid USD910 million for
23 licenses). Fierce Wireless writes that T-Mobile began leasing the
extra 600MHz spectrum from the two Columbia Capital-affiliated
firms in 2020 to boost capacity during the COVID-19 crisis, signing
a three-year paid leasing agreement. T-Mobile has also been
leasing 600MHz licenses from DISH since the early days of COVID;
according to New Street analysts cited by Fierce Wireless, T-Mobile
is currently leasing ‘slightly more spectrum from DISH (than from
Columbia) at an annual rate of USD56 million.’

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