CABLE, DBS UP ANTE FOR T-MOBILE AS MAKE-OR-BREAK AUCTION BEGINS

摘要

As the advanced wireless services auction starts Wed. potential bids by the deep-pocketed contenders means T-Mobile, which needs spectrum to stay competitive, must dip deeper into its coffers, sources agreed. Significant upfront payments made by cable companies and DBS operators is likely good news for the FCC, which wants to see a strong auction, for competition in general, and for equipment suppliers who would get a new set of customers. Wireless DBS, a DirecTV and EchoStar joint venture, led the list of companies buying bidding units for the auction. SpectrumCo, a cable/Sprint Nextel partnership, was #2. T-Mobile was 3rd. In coming weeks the bidders will reveal more about what they’re willing to spend. “This is a make or break auction for T-Mobile -- they are bandwidth starved,” said Scott Cleland of Precursor: “For DBS, you don't park $1 billion with the government if you're not serious. Cable doesn't park more than $600 million if they're not serious. That is real money... You don't do that lightly.” nn“I have to think T-Mobile was unpleasantly surprised by the presence of 2 much larger bidders showing up,” said a lawyer who's following the auction closely: “Without Wireless DBS or cable they're in a pretty strong position in this auction. Now with the potential for 2 possible nationwide plays the price tag may have just gone much, much higher.” Participation by cable and DBS could boost competition -- a boon for consumers, a 2nd regulatory attorney said. But if both bid aggressively, T-Mobile could face a rough few weeks, the attorney said.