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Operator’s parent Softbank reportedly planning to establish company to bid for 600-MHz spectrum.
Sprint may have opted out of the upcoming U.S. incentive auction, but its parent company Softbank appears to have other ideas.
Sources cited by U.S. news outlet CTFN last week claimed that Japan-based Softbank is mulling whether to participate.
On 29 March, the Federal Communications Commission (FCC) is due to begin reallocating 600-MHz spectrum currently held by TV broadcasters. The process is divided into two parts; the reverse auction will see broadcasters sell their frequencies back to the FCC, which will then offer them to telcos in the forward auction.
Sprint CEO Marcelo Claure said in September that his company has the spectrum it needs to provide the coverage and capacity its customers crave.
Sprint is rolling out LTE FDD in the 800 MHz and 1900 MHz bands, and LTE TDD using its sizeable hoard of 2.5-GHz spectrum.
It is worth noting that only the 800 MHz band offers performance comparable to 600-MHz, and Sprint only holds 2×5 MHz of 800-MHz spectrum. If Sprint does not take part in the incentive auction, it will have to rely on its limited low-band holdings, or spend more money to deploy more sites running on 1900-MHz or 2.5-GHz.
It would seem that Softbank might be keen on bolstering its U.S. spectrum holdings.
According to CTFN, Softbank is considering setting up a new company that will take part in the incentive auction, acquire spectrum and then sell it or swap it at its convenience.
The rumours emerged after Softbank announced plans to reorganise itself into two businesses, one holding its domestic operations and the other holding its international assets. Both will be wholly-owned subsidiaries of Softbank Group.
