U.S. mobile carriers jumped on the opportunity to purchase 126 MHz of "beach front" wireless spectrum during an auction organized by the Federal Communications Commission (FCC).
FCC's efforts to convince televisions to sell unused spectrum to mobile carriers proved fruitful, and the extended bandwidth should enable faster speeds and higher networks reliability for the consumer sector.
Mobile carriers and various other interested bidders will be able to buy packages of 10 MHz from the FCC following the auction.
Leaders of the wireless industry complained that in order to meet the blooming customer demand, new spectrum is required.
The low-band spectrum reaches longer distances and enables significant penetration of walls and obstacles, making it ideal for phone calls. Mobile carriers have had their eyes on the 600 MHz band for some time now, and in the wake of the auction it is expected that they will push out 5G services much easier.
No official word permeated the media on how many TV stations yielded their spectrum, but the FCC did hint that the number was consistent. TV stations had two options: they were able to relocate their OTA signals to different spectrums or simply clear certain bandwidths. Both courses of action offered them a share in the auction. Experts from the field estimate that this stage of the auction will pull between $45 and $60 billion.
"Today's announcement reflects the voluntary decision by many broadcasters that this auction truly is a once-in-a-lifetime opportunity," says FCC Chairman Tom Wheeler. He went on to say that the initiative's success relies on "robust participation" from broadcasters. The FCC leader also points out consumers will benefit greatly from the result of the auction.
Players from the industry, such as trade group CTIA, commended the increased space of maneuver for mobile carriers. The head of CTIA, Meredith Attwell Baker, notes that the organization expects to see 4G LTE and 5G growing fast after the auction.
The next step in the auction starts on May 31, and it consists of broadcasters taking government bids on their licenses. After that, the FCC evaluates the government-purchased licenses and sells them to wireless operators. The latter stage is scheduled for the end of June or start of July.
Looking at the numbers, the process is the largest auction in FCC's history.
