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New Block D Auction
by Andrew McCaskey
As cumbersome as the Block D auction appears to be it is going to have one desirable effect. It’s only a shame that we did not have one thirty years ago.
Block D was pulled during the auction last spring, as no bidder was willing to meet the $1.3 Billion reserve price, encumbered with the requirement that the allocations be shared with public health and safety systems on a secondary basis.
The new auction is really two sets: one auction at the reduced reserve price of around $750Million for nationwide license to the spectrum block, the other for around sixty regional licenses that must be used for expansion using either LTE or WiMax technologies.
As I understand the plan, if the nationwide block meets the reserve price, the winner gets to take all, including the public safety shared arrangement. If the nationwide block does not sell for the asking price, then the parallel regional licenses will go. The highest bidders and the winning technology will take all.
WiMax or LTE, the losing bidders and technology will really lose. The winner will be named as the technology of choice.
Contrast the crazy quilt of analog, CDMA,TDMA,GSM and additional frequency variants that we tolerated for thirty years in the US. That lack of standard and “letting the market decide” took time that can’t be afforded today.
At least someone is trying to make a decision. The market still decides – it just decides a lot more quickly.
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