Verizon Communications Inc. Was overwhelmingly the largest bidder in a crucial 5G auction on the coveted C-band spectrum, followed by AT&T.
Verizon at the C-band Spectrum Auction
As told by The Verge, Verizon was the biggest bidder with the telecommunications company spent nearly twice as much as AT&T with over $45.4 billion. AT&T's total bids racked up to $23.4 billion.
In comparison, T-Mobile had spent a total of $9.3 billion, which was expected due to the substantial mid-band spectrum holdings that the company already had following its acquisitions of Sprint this year.
According to the news site, the move Verizon took at the C-band spectrum auction, which was held by the Federal Communications Commission (FCC), is not entirely surprising. As a matter of fact, many are expecting that the total bidding would accumulate to up to $80 billion.
Verizon and AT&T would be the top leaders of the bid. The only shocking standpoint of the story is Verizon outbidding AT&T.
Other Telecommunication Companies at the 5G Auction
The auction drew far greater proceeds than many analysts would have initially suspected, leading some to believe that T-Mobile bid considerably at the auction to drive the prices for its competition that had a more crucial need for this type of spectrum.
As expected, three of the largest US telecommunications company (T-Mobile, Verizon, AT&T) were far the more prominent bidders in the C-band spectrum auction, with the fourth-largest winning bid comes from US Cellular Corp as the company spent $1.3 billion.
Meanwhile, Little Bear Wireless, which MarketWatch reports indicated was the name used on behalf of Dish Network, which they spend $2.5 million at the auction.
The satellite company is looking to build its own wireless network but it already sits on a wealth of spectrum.
According to Bloomberg, the budget-stretching bidding from spectrum underscores how crucial these so-called mid-band frequencies are to the companies trying to seek global dominion over the emerging 5G technology.
The airwaves are prized for their ability to travel worldwide and carry lots of data. It is expected to grow in the years to come and will be crucial for the next generation of mobile devices, vehicles, health-care equipment, and manufacturing facilities.
In addition to airwaves, the winning bidders will also pay an estimated $13 billion or more to current users of the data airwave, including satellite providers Intelsat SA and SES SA. The satellite companies will move to numerous frequencies to fit other 5G providers.
The wireless companies have collected ever-larger chunks of the electromagnetic spectrum to keep up with their customer's growing need for music, video, and software streamed to their smartphoenes. A shortage of the asset can degrade service, putting a carrier at a competitive disadvantage.
Verizon shares have lost 5.8 percent over the past three months, as AT&T shares have risen 0.5 percent and as T-Mobile shares have fallen 6.8 percent.
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Written by: Luis Smith