https://urgentcomm.com/wp-content/themes/ucm_child/assets/images/logo/footer-new-logo.png
  • Home
  • News
  • Multimedia
    • Back
    • Multimedia
    • Video
    • Podcasts
    • Galleries
    • IWCE’s Video Showcase
    • Product Guides
  • Commentary
    • Back
    • Commentary
    • Urgent Matters
    • View From The Top
    • All Things IWCE
    • Legal Matters
  • Resources
    • Back
    • Resources
    • Webinars
    • White Papers
    • Reprints & Reuse
  • IWCE
    • Back
    • IWCE
    • Conference
    • Special Events
    • Exhibitor Listings
    • Premier Partners
    • Floor Plan
    • Exhibiting Information
    • Register for IWCE
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Terms of Service
    • Privacy Statement
    • Cookie Policy
  • Related Sites
    • Back
    • American City & County
    • IWCE
    • Light Reading
    • IOT World Today
    • Mission Critical Technologies
    • TU-Auto
  • In the field
    • Back
    • In the field
    • Broadband Push-to-X
    • Internet of Things
    • Project 25
    • Public-Safety Broadband/FirstNet
    • Virtual/Augmented Reality
    • Land Mobile Radio
    • Long Term Evolution (LTE)
    • Applications
    • Drones/Robots
    • IoT/Smart X
    • Software
    • Subscriber Devices
    • Video
  • Call Center/Command
    • Back
    • Call Center/Command
    • Artificial Intelligence
    • NG911
    • Alerting Systems
    • Analytics
    • Dispatch/Call-taking
    • Incident Command/Situational Awareness
    • Tracking, Monitoring & Control
  • Network Tech
    • Back
    • Network Tech
    • Interoperability
    • LMR 100
    • LMR 200
    • Backhaul
    • Deployables
    • Power
    • Tower & Site
    • Wireless Networks
    • Coverage/Interference
    • Security
    • System Design
    • System Installation
    • System Operation
    • Test & Measurement
  • Operations
    • Back
    • Operations
    • Critical Infrastructure
    • Enterprise
    • Federal Government/Military
    • Public Safety
    • State & Local Government
    • Training
  • Regulations
    • Back
    • Regulations
    • Narrowbanding
    • T-Band
    • Rebanding
    • TV White Spaces
    • None
    • Funding
    • Policy
    • Regional Coordination
    • Standards
  • Organizations
    • Back
    • Organizations
    • AASHTO
    • APCO
    • DHS
    • DMR Association
    • ETA
    • EWA
    • FCC
    • IWCE
    • NASEMSO
    • NATE
    • NXDN Forum
    • NENA
    • NIST/PSCR
    • NPSTC
    • NTIA/FirstNet
    • P25 TIG
    • TETRA + CCA
    • UTC
Urgent Communications
  • NEWSLETTER
  • Home
  • News
  • Multimedia
    • Back
    • Video
    • Podcasts
    • Omdia Crit Comms Circle Podcast
    • Galleries
    • IWCE’s Video Showcase
    • Product Guides
  • Commentary
    • Back
    • All Things IWCE
    • Urgent Matters
    • View From The Top
    • Legal Matters
  • Resources
    • Back
    • Webinars
    • White Papers
    • Reprints & Reuse
    • UC eZines
    • Sponsored content
  • IWCE
    • Back
    • Conference
    • Why Attend
    • Exhibitor Listing
    • Floor Plan
    • Exhibiting Information
    • Join the Event Mailing List
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Terms of Service
    • Privacy Statement
  • Related Sites
    • Back
    • American City & County
    • IWCE
    • Light Reading
    • IOT World Today
    • TU-Auto
  • newsletter
  • In the field
    • Back
    • Internet of Things
    • Broadband Push-to-X
    • Project 25
    • Public-Safety Broadband/FirstNet
    • Virtual/Augmented Reality
    • Land Mobile Radio
    • Long Term Evolution (LTE)
    • Applications
    • Drones/Robots
    • IoT/Smart X
    • Software
    • Subscriber Devices
    • Video
  • Call Center/Command
    • Back
    • Artificial Intelligence
    • NG911
    • Alerting Systems
    • Analytics
    • Dispatch/Call-taking
    • Incident Command/Situational Awareness
    • Tracking, Monitoring & Control
  • Network Tech
    • Back
    • Cybersecurity
    • Interoperability
    • LMR 100
    • LMR 200
    • Backhaul
    • Deployables
    • Power
    • Tower & Site
    • Wireless Networks
    • Coverage/Interference
    • Security
    • System Design
    • System Installation
    • System Operation
    • Test & Measurement
  • Operations
    • Back
    • Critical Infrastructure
    • Enterprise
    • Federal Government/Military
    • Public Safety
    • State & Local Government
    • Training
  • Regulations
    • Back
    • Narrowbanding
    • T-Band
    • Rebanding
    • TV White Spaces
    • None
    • Funding
    • Policy
    • Regional Coordination
    • Standards
  • Organizations
    • Back
    • AASHTO
    • APCO
    • DHS
    • DMR Association
    • ETA
    • EWA
    • FCC
    • IWCE
    • NASEMSO
    • NATE
    • NXDN Forum
    • NENA
    • NIST/PSCR
    • NPSTC
    • NTIA/FirstNet
    • P25 TIG
    • TETRA + CCA
    • UTC
acc.com

Commentary Newsletters


AT&T sets the market for 700 MHz spectrum

AT&T sets the market for 700 MHz spectrum

We're still three-and-half months away from the official start of the 700 MHz auction, but AT&T unofficially made the opening bid by agreeing to pay $2.5 billion for 700 MHz spectrum owned by Aloha Partners
  • Written by Urgent Communications Administrator
  • 15th October 2007

We’re still three-and-half months away from the official start of the 700 MHz auction, but AT&T unofficially made the opening bid by agreeing to pay $2.5 billion for 700 MHz spectrum owned by Aloha Partners.

Most analysts applauded the move, although industry observers were divided on what strategy AT&T would pursue in the wake of the deal. Some believe the Aloha purchase is just the first step in an AT&T strategy to aggressively bid on spectrum throughout the 700 MHz band, while others think the Aloha agreement means AT&T only needs to bid on a few licenses in the adjacent B Block to give the giant carrier a nationwide footprint in the 700 MHz band.

Regardless of what AT&T’s auction strategy is, the Aloha deal “gives you a little idea what everybody thinks 700 [MHz spectrum] is worth,” said mobile wireless consultant Andrew Seybold.

Indeed, it appears that 700 MHz spectrum will be valued highly — a sign that should be a relief to Congress, which needs the auction to generate $10 billion in money for U.S. Treasury to meet budgetary expectations. In the Aloha deal, AT&T is paying $2.5 billion for 12 MHz of spectrum that covers 65% of the U.S. population.

Projecting the price it paid Aloha on a per-population basis, AT&T would have valued 12 MHz of nationwide spectrum at about $3.85 billion, despite the fact that one analyst described the spectrum purchase as a “steal” for AT&T. Indeed, more than one industry observer has noted that AT&T would not have done the Aloha deal if it didn’t receive a discount compared to what the carrier expects to pay for spectrum at auction.

Given this and the fact that the wireless industry has always placed a premium on nationwide licenses, it would seem reasonable — maybe conservative, according to some — to value an unencumbered license for 10 MHz of nationwide 700 MHz spectrum at $3.5 billion or $4 billion.

Of course, the only two nationwide 10 MHz swaths available in the auction — the commercial D Block and public safety’s broadband airwaves — are both expected to be used as the foundation of the public-private network that is supposed to meet public-safety’s wireless broadband needs.

Unencumbered, this 20 MHz block of nationwide spectrum would be worth $7 billion to $8 billion. Of course, the spectrum is encumbered by the high-priority obligation that the wireless broadband network feature the kind of reliability and coverage that public-safety entities expect from their own private LMR networks. At least one projection estimated that it would cost between $6 billion and $7 billion more to build a public-safety-grade network than it would to build a typical commercial network.

If the D Block winner bids only slightly more than the $1.3 billion reserve price for the spectrum, it would appear that the commercial operator would be in the ballpark for making this work economically. But Seybold — noting that incumbents AT&T and Verizon, as well as newcomer Frontline Wireless, are the most likely bidders for the D Block — cautioned that the public-safety licensee’s statement of requirements will play a critical role in making the public-private venture work.

“If the public-safety community puts too many terms and conditions on what they expect that network to look like, they could scare away the bidders,” Seybold said. “The shame of that is, if the bidders get scared away and nobody shows up, the rules will get changed somehow — and we don’t know how — and the spectrum goes back out to bid.

“The losers [in this scenario] are the first-responder community, because they don’t get their 12 MHz built. The only way they get their 12 MHz built in a nationwide system is if there is a [D Block] winner, and somebody builds it.”

Thus the national public-safety licensee — most observers believe it will be the Public Safety Spectrum Trust, with Cyren Call Communications as its advisor/agent — has a formidable challenge before it. In its statement of requirements, the licensee must strike a delicate balance between protecting public safety’s interest in the network and maintaining the economic viability of the network for the commercial operator.

While public safety should not compromise on its needs regarding this network, its leaders at the same time must ensure that the statement of requirements does not simply become a wish list filled with unnecessary bells and whistles, no matter how tempting they may be. With such restraint, this public-private arrangement can work economically for everyone.

Without it, this once-in-a-lifetime opportunity likely will prove to be little more than an unfulfilled fantasy.

E-mail me at [email protected].

Tags: Commentary Newsletters

Most Recent


  • How 5G is making cities safer, smarter, and more efficient
    It’s a scenario we’ve all experienced: an ambulance with a blaring siren racing against time to get a person in medical distress to a hospital through traffic. What we don’t see is 5G connectivity enabling paramedics to communicate with hospital staff via video conference and coordinate care in real-time before arriving at the emergency room. […]
  • 3GPP moves Release 18 freeze date to March 2024
    The latest set of 3GPP Plenary electronic meetings (e-meetings) concluded on Dec. 19, 2022. The meetings focused on the Release 18 (R18) feature progress and schedule. It was decided to extend the R18 freeze date (specifications complete for all R18 features) by three months to March 2024 to ensure the quality of the R18 3GPP […]
  • Do smart cities make safer cities?
    According to the United Nations, two out of three people will live in urban areas by 2050. This increase in city populations will undoubtedly put an even greater strain on government service providers.  Faced with the growing demand of residents for increasingly agile and efficient public services, cities must be able to adapt quickly and […]
  • Swatting has serious implications and shouldn’t be ignored
    A rash of “swatting” incidents occurred across the country in September. Swatting is the practice of falsely reporting an emergency to elicit a law-enforcement response, ideally one involving the SWAT (special weapons and tactics) team.  As an example, Cincinnati-area high school was placed on lockdown when a 911 call was made to report an active-shooter […]

Leave a comment Cancel reply

To leave a comment login with your Urgent Comms account:

Log in with your Urgent Comms account

Or alternatively provide your name, email address below:

Your email address will not be published. Required fields are marked *

Related Content

  • Unlocking the power of ESInets: Different NG911 provisioning approaches exist; level of control is key differentiator
  • Redefining communications for today’s mobile workforces
  • Public safety needs a better way to triage emergency calls
  • In challenging year, working with public safety to move FirstNet forward

Commentary


How 5G is making cities safer, smarter, and more efficient

26th January 2023

3GPP moves Release 18 freeze date to March 2024

18th January 2023

Do smart cities make safer cities?

  • 1
6th January 2023
view all

Events


UC Ezines


IWCE 2019 Wrap Up

13th May 2019
view all

Twitter


UrgentComm

Newscan: Cyberattacks on DoE national labs draw lawmaker scrutiny dlvr.it/Shvpw3

3rd February 2023
UrgentComm

The shine begins to wear off 5G private wireless dlvr.it/Shth0P

3rd February 2023
UrgentComm

Phishers trick Microsoft into granting them ‘verified’ Cloud Partner status dlvr.it/Shqngn

2nd February 2023
UrgentComm

Shapeshifting robot can morph from a liquid to a solid dlvr.it/Shqk9K

2nd February 2023
UrgentComm

Automakers against stampede to BEV dominance dlvr.it/ShpX08

2nd February 2023
UrgentComm

FCC nominee Gigi Sohn headed for third Senate hearing dlvr.it/ShpDcZ

1st February 2023
UrgentComm

Sign up to learn how to successfully manage your Motorola ASTRO® 25 System: spr.ly/60143j8fp https://t.co/XcxiUwzN27

1st February 2023
UrgentComm

Hytera parent cites financial health, but unable to make royalty payment to Motorola Solutions dlvr.it/ShlrlM

1st February 2023

Newsletter

Sign up for UrgentComm’s newsletters to receive regular news and information updates about Communications and Technology.

Expert Commentary

Learn from experts about the latest technology in automation, machine-learning, big data and cybersecurity.

Business Media

Find the latest videos and media from the market leaders.

Media Kit and Advertising

Want to reach our digital and print audiences? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • American City & County
  • IWCE
  • Light Reading
  • IOT World Today
  • Mission Critical Technologies
  • TU-Auto

WORKING WITH US

  • About Us
  • Contact Us
  • Events
  • Careers

FOLLOW Urgent Comms ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.