3.45 GHz Auction Hits $6.53B

markets. “We don’t know whether a national carrier simply realized they won’t be able to win 40MHz in large markets and reduced demand, or if a financial bidder dropped out (though we suspect the latter),” New Street’s Philip Burnett told investors: “With at least 16 rounds remaining until the auction minimum is reached and excess demand having halved since the auction started, our confidence that the auction will close is waning.” Excess demand is decreasing, “but in a more traditional way,” emailed BitPath Chief Operating Officer Sasha Javid: “Bidders are leaving the very biggest markets of New York and Los Angeles and moving into smaller markets. Nevertheless, it will be the very biggest markets that will drag auction proceeds above the reserve price should this auction succeed in closing.” Except for C band and a few other auctions, “I always worry about a spectrum auction until it crosses the closing threshold,” former Commissioner Mike O’Rielly told us. 3.45 GHz “was made more difficult by the overinflated agency cost estimate and the flawed spectrum cap per market of 40 MHz,” he said: “I remain optimistic that those bidding will ultimately make it succeed because failure would be extremely detrimental.” The auction has to exceed a $14.77 billion reserve price to close.