The Federal Communications Commission has pronounced the company that won last summer’s auction. The major contenders were Verizon Communications Inc (NYSE:VZ) and AT&T Inc (NYSE:T), and all of them planned to secure the license to enable them to utilize important airwaves ideal for 5G.
Verizon and AT&T win
The announcement pointed out to Verizon and AT&T as the winners in the contest, and the two are currently strategizing on using the airwaves on their quest to set up 5 G networks. Experts have applauded the companies’ moves, terming the 5G network much faster than the current wireless service.
Reports indicate that Verizon as having placed a bet worth $45.5 billion through its Cellco Partnership subsidiary. The placement of such a figure on the bet shows how much the airwaves mean to the company that keeps striving to remain at the top of its game.
AT&T, on the other hand, placed a bet amounting to about $23.4 billion, and it did that through AT&T Spectrum Frontiers.
The other major contender was T-Mobile Us Inc (NASDAQ:TMUS), a company that maintains its position as the third-largest U.S. carrier. This company bid $9.3 billion, and a figure deemed to be the third-largest in all the bets placed.
The sums spent by the different contenders tell a lot about how their determination to secure licenses for the airwaves. Sources reveal that the amounts spend ended up surpassing last summer’s projections.
CTIA CEO Meredith Baker refers to the record-breaking results, outlining that they highlight the great need for licenses. The official says that it is time to rethink issues, focusing efforts and resources on developing a robust spectrum auction pipeline.
CTIA as a trade group continues focusing its efforts and resources as a trade group in representing the wireless industry the best way possible. Every bidder is still bound by the quiet period, and that means none of them is allowed to drop comments publicly.
The industry’s projections have come to pass! The industry anticipated that Verizon and AT&T would be the frontrunners in the race, and they took the day eventually. The projections considered that the two companies lacked the mid-band spectrum, made available in the auction.