Weak demand for FCC's 5G mid-band auction hands T-Mobile a win-win

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Weak demand for FCC's 5G mid-band auction hands T-Mobile a win-win
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T-Mobile is looking at a big win-win for the FCC's auction 108 which has more mid-range 2.5GHz mid-band spectrum up for bids.

Did you ever wonder why T-Mobile was willing to spend $26 billion to buy Sprint? You didn't think it was because T-Mobile badly wanted its rivals' stores, customer list, and operations, did you? Did you? T-Mobile wanted the hoard of 2.5GHz mid-band spectrum that Sprint owned and it wanted it for a specific reason. Unlike Verizon and AT&T, both of which started their 5G build-out by working with their mmWave spectrum first, T-Mobile had a better plan.

The soft demand, surprising as it is, has forced the FCC to institute some changes to the bidding process. The bidding rounds will now consist of four one-hour periods instead of two two-hour rounds. This change will take place starting today. The results were called"abysmal" by New Street Research, a Wall Street firm that focuses its analysis on telecom and technology.New Street sharply axed its estimates for Auction 108 from estimated proceeds of $3.

Not only does it appear that T-Mobile will win most of the licenses up for bid, it also will do so by spending a lot less money than the company anticipated. When this writer started writing for PhoneArena back in 2009,T-Mobile was dead last among the four majors. It was the last to offer 3G and the last to deliver 4G. Now it is considered the most innovative of the major U.S. wireless providers and is arguably the 5G leader in the states.

One reason for the lack of demand for the 2.5GHz auction is that only 20% of the 8,017 licenses being auctioned off are considered to be"clean." According to New Street, that means that the winner of those licenses doesn't have to worry about interfering with the incumbent operator in that region.

The auction is expected to end at the middle of next month, but could be cut short due to the weak demand.Get the most important news, reviews and deals in mobile tech delivered straight to your inbox

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