In a move that reminded us that the FCC’s multi-billion-dollar AWS-3 spectrum auction is still running, AT&T this week announced that it has signed credit agreements worth in excess of US$11 billion.
The U.S. telco on Wednesday entered into a $9.16 billion credit agreement, split into two tranches, with certain investment and commercial banks, and Mizuho Bank. It also entered a $2 billion, 18-month credit deal with Mizuho as the initial lender and agent.
"In the event advances are made under either agreement, those advances would be used for general corporate purposes, including acquisition-related payments," AT&T said in an SEC filing.
Industry watchers immediately looked to the AWS-3 auction.
As the big guns of the U.S. mobile market, AT&T and Verizon are widely believed to be the biggest spenders in the auction, although the FCC won’t publish the results until after bidding has come to an end.
Earlier this month, Verizon CEO Lowell McAdam hinted that his company has not spent as much as some media outlets have suggested; however, he was unable to share any more information.
As of Friday morning, after 278 rounds of bidding, the auction had raised $44.87 billion. The next round is due to start later in the day.
Bidding has been creeping up slowly for at least the past month, but it is still not clear when the auction will draw to a close.
