jester121
Premium
join:2003-08-09
Lake Zurich, IL
 ·surpasshosting
 ·ViaTalk
| reply to KrK
Re: As Predicted...
said by KrK  :No surprise here, and nothing gained for US consumers. Ridiculous statement. Do you think they're going to sit in a dark cave admiring their spectrum? "My precioussss"
No, they're going to develop technology that uses it, and sell that to CONSUMERS. It's expected, according to basic economics, that people who give Verizon money to use the spectrum will benefit from it.
 |
|
factchecker
@cox.net
| said by jester121 :said by KrK :No surprise here, and nothing gained for US consumers. Ridiculous statement. Do you think they're going to sit in a dark cave admiring their spectrum? "My precioussss" Considering in the past, bidders have placed bids just for the purpose of locking out competition by denying them valuable spectrum, it is a distinct possibility.
There is absolutely no guarantee that anything will be done with the spectrum. |
|
jester121
Premium
join:2003-08-09
Lake Zurich, IL | You're right, but those weren't multi-billion dollar, geographically diverse, very useful frequencies that everyone has been salivating over. Different animal entirely here. |
|
factchecker
@cox.net
| said by jester121 :You're right, but those weren't multi-billion dollar, geographically diverse, very useful frequencies that everyone has been salivating over. Different animal entirely here. I'll grant you that point. The fact that this spectrum is so sought after makes it far less likely that they will sit on it and do nothing, but past behavior by some of these companies certainly does weigh in on people's opinion of who won. |
|
Fisamo
Premium
join:2004-02-20
Apex, NC
·VOIPo
·AT&T CallVantage
| reply to factchecker
said by factchecker :
Considering in the past, bidders have placed bids just for the purpose of locking out competition by denying them valuable spectrum, it is a distinct possibility.
There is absolutely no guarantee that anything will be done with the spectrum.
Agreed. There is no guarantee that they will do anything with these licenses. But they will be sorely pressed to use, instead of shelve, the assets forthe following reasons (among others) :
•Consumer demand for advanced services
•Shareholder demand for ROI (which won't come from simply locking out competitors by 'shelving' such a license
•Consumer demand for "more bars in more places", which should be possible at this frequency
Rhetorical question: If not the incumbents, who has the cash to compete with them on the license purchase, besides Google and Microsoft? WHY would Google or Microsoft compete against the incumbents if the asset isn't at the core of their business model?
Those of us on the sidelines can probably think of numerous reasons Google should have bid to win, but the only discussions that count are those that occur in Google's boardroom, and the 'nays' clearly prevailed. |
|
MichaelWacey
OwlSaver
Premium
join:2005-01-30
Berwyn, PA
 ·Verizon FIOS
 ·Comcast
| reply to factchecker
In most auctions of public assets, there is a requirement to make good economic use of the asset for the public good in a specified time. If the winner does not, they loose both the asset and the money they payed for it. Land auctions typically work this way.
Does anyone know if this auction has such a provision? If it does, do they define 'economic use' and 'public good'? |
|
KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
 ·AT&T Yahoo
·AT&T DSL Service
·Cox HSI
·AT&T Southwest
1 edit | reply to jester121
No, they will use it to sell the same services they already sell, albeit maybe better coverage, or expanded reach, but at price points and with features and limitations they impose, not what consumer want. I was hoping for an expansion in competition, maybe a third broadband front (Widespread wireless from another player)... but while I was hoping for it, I expected this result.
This will not be a win for consumers. Sure, you might get sweeter tasting Kool-Aid, but it will still be Kool-Aid.
For many more rural areas, this auction was a hope that someone would step up and use this spectrum to provide wide ranging broadband over a large area.... Even if it wasn't that fast, it would beat the 26.4k or 33k dial-up they're stuck with. Unfortunately, the auction didn't come out that way. Looks like much of the USA will remain unserved or underserved for decades to come. |
|
en102
Canadian, eh?
join:2001-01-26
Valencia, CA | reply to Fisamo
And how long has Sprint 'shelved' its spectrum for WiMAX ? Its been years. With Sprints stock in the toilet, they may actually have to sell of Xohm.
I don't expect much different from AT&T.
--
Canada = Hollywood North |
|
russotto
join:2000-10-05
Collegeville, PA | reply to MichaelWacey
Yes, these auctions contain build-out provisions. I do not know the wording; I do know that it is based on covering a certain percentage of the population with service. |
|
