<A> FCC Gives Clearer Picture Of Wireless Auction Bidders
By Brian Steinberg
NEW YORK (Dow Jones)--The cloak-and-dagger atmosphere still pervades, but market-watchers trying to read the tea leaves in an ongoing auction for wireless bandwith now have a clearer picture of just which companies are getting involved.
Federal Communications Commission officials said over the weekend that 138 different telecommunications companies have deposited $357.9 million in upfront payments to reserve themselves a spot in the auction for licenses to transmit phone calls using microwaves in 493 markets in the 28-gigahertz microwave spectrum.
At least one of the rumored heavy-hitters is out of the running, according to the FCC list. MSM Inc., which many auction observers had believed was operated by software giant Microsoft Corp. (MSFT), has been declared one of 17 "nonqualified" bidders. Microsoft, which has been trying to get involved in many different aspects of delivering content, did not respond to a call seeking comment. Others on the outs include cable players Comcast Corp (CMCSA) and RCN Corp (RCNC), according to the list.
Should a single bidder garner enough of the available stakes, companies already involved in the market - such as WinStar Communications Inc. (WCII), Teligent Inc. (TGNT) and Advanced Radio Telecom Corp. (ARTT) - could face new and unwanted competition from a much larger concern. Analysts have suggested a new player in the industry could dilute the value of currently-held licenses.
Analysts, fund managers and brokers all are waiting to see which party walks away with what licenses. "If someone gets in all top 50 (markets), it's less than good news for Teligent and WinStar, because they're going to have a new competitor, " said Legg Mason Wood Walker analyst Jack Reagan last week.
Until the final results of the auction are made public several weeks from now, the companies' positions will remain somewhat uncertain.
Teligent and WinStar, however, are still decidedly in the game. Operating under the moniker AUCO Inc. (which a company spokesman has said stands for 'Auction Company'), Teligent has put down $5 million in payments. WinStar on the other hand, has placed $13 million down.
The companies have said that they are mostly interested in adding value to their current wireless holdings, not in making major purchases. |
