AT&T, Verizon and T-Mobile US were among several telcos granted AWS-3 licences this week; however, Dish Network, which caused a stir by bidding for spectrum via designated entities in order to qualify for discounts, has not.
In documents published on Wednesday, the U.S. Federal Communications Commission (FCC) said applications from 11 of the 31 winning bidders "have been found to be complete and in conformance with the Commission’s rules. Furthermore, the Commission has received full payment."
AT&T, Cellco Partnership – the bidding vehicle used by Verizon – and T-Mobile US, as well as smaller players includin g Michigan Wireless, Central Texas Telephone Investments, and Triangle Communication System, appeared on the FCC’s list, but the two Dish entities that won spectrum – Northstar Wireless and SNR Wireless – did not.
"We initially thought Dish would have been issued its spectrum by now," said BTIG analyst Walter Piecyk, in a research note on Thursday.
However, he said that the delay should not come as a surprise because Dish’s spectrum application is more complicated given its use of designated entities.
"We continue to expect the designated entity licenses to be issued without further complication," Piecyk said.
Auction 97 concluded at the end of January, raising $44.9 billion in gross bids, far exceeding expectations. AT&T emerged as the top bidder, spending $18.2 billion, while Dish came in second with a gross bid total of $13.3 billion.
Dish’s choice to bid via three designated entities (DEs) – American AWS-3 Wireless, Northstar Wireless, and SNR Wireless – meant it qualified for a 25% discount on winning bids under the FCC’s ‘Designated Entity’ programme.
The move was given short shrift by FCC commissioner Ajit Pai who said it made a mockery of the DE programme, which is designed to encourage participation by smaller players. AT&T accused Dish of distorting demand by using its DE’s to bid individually for the same spectrum licences. Dish defended its conduct, insisting it had played by the rules.
Despite the controversy, Dish’s AWS-3 application is expected to be successful.
"We…still don’t believe any restrictive or punitive actio n can take place on Dish’s designated entities as a result of the AWS-3 auction," said BTIG’s Piecyk.
