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FCC working to keep crucial 2016 spectrum auction on track

Jul. 07, 2015 9:34 PM ETT-Mobile US, Inc. (TMUS) StockDIS, EVC, CMCSA, T, VZ, SBGI, TMUS, FOX, PARA, SBy: Jason Aycock, SA News Editor21 Comments
  • Next week, the FCC is looking to keep a landmark broadcast incentive wireless spectrum auction on track for early next year despite contentious debates from stakeholders -- and if it does, it's a boon for T-Mobile (NASDAQ:TMUS), says Guggenheim's Paul Gallant.
  • That's because though T-Mobile and Sprint (NYSE:S) have pushed for a bigger reserve of spectrum for "smaller carriers" (i.e.: them), a delay might mean that the current 30 MHz set-aside was at risk.
  • Meanwhile, the airwaves will be coming from TV broadcasters who must go along with any plan -- meaning they expect to see prices they like. A group representing smaller broadcasters say if the framework isn't revised, opening prices for broadcasters could be reduced by $8M.
  • Major broadcasters (ABC (NYSE:DIS), CBS, NBC (NASDAQ:CMCSA), FOX) aren't expected to be key airwaves sellers, while smaller groups like Sinclair (NASDAQ:SBGI) and Entravision (NYSE:EVC) are expected to sell.
  • Related firms: T, VZ
  • Previously: FCC chairman: Cap bid credits, keep smaller spectrum set-aside (Jun. 25 2015)

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