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story category AT&T Hesitates About Joining Spectrum Auction
May not be a good business decision
(old news - 12:15PM Saturday Oct 20 2007)
tags: business · wireless · telco · AT&T U-Verse
Tipped by LiamJunket See Profile
AT&T recently acquired enough 700Mhz spectrum from Aloha Partners to make it the company owning the most of that spectrum at the current time. Their leadership in this area may end after the upcoming 700 Mhz auction if they’re honest in their announcement that they may not bid in the auction. CEO Randall Stephenson says that the FCC’s open access rules might make it impossible to make a profitable business out of bidding in the auction. Despite the fact that Stephenson calls the spectrum "beachfront property" and concedes that they won't find better spectrum anytime soon, he says that they need to run more numbers and create a proper business model before committing to the auction.

Related:
  1. AT&T Grabs 700Mhz Spectrum
  2. FCC's Martin Wants to Approve AT&T Spectrum Purchase
  3. AT&T Outlines 2009 Spending Plans
  4. Verizon CEO Slams Sprint, Cable
  5. AT&T Exploring HDTV Over 802.11n
  6. AT&T Slowing U-Verse Deployment?
  7. Did AT&T's Bad Week Kill Their iPhone Exclusivity Extension?
  8. Verizon: LTE iPhone 'Apple's Decision'
Forums » AT&T Hesitates About Joining Spectrum Auction
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Post a:
rdmiller

join:2005-09-23
Richmond, VA

No problem

AT&T will eventually get it anyway. They'll just wait for the next Republican president, then buy both Qwest and Verizon. No need to bother with the auction. Too messy!

hahahaha

@bellsouth.net

Re: No problem

said by rdmiller See Profile :

AT&T will eventually get it anyway. They'll just wait for the next Republican president, then buy both Qwest and Verizon. No need to bother with the auction. Too messy!
Maybe there won't be a "next Republican president" .. your choice

MrMoody
Liberal Capitalist

join:2002-09-03
Smithfield, NC
·Skype
·magicjack.com

Re: No problem

I haven't seen the Dems do much to discourage anti-competitive corporate actions, either. Sure would be nice to see ANY third political party stand a chance for once.
--
"It is a future in which globalization really does work ... and everybody winds up getting to be part of the third world." - William Gibson

n2jtx

join:2001-01-13
Glen Head, NY
·Optimum Online

Re: No problem

said by MrMoody See Profile :

I haven't seen the Dems do much to discourage anti-competitive corporate actions, either. Sure would be nice to see ANY third political party stand a chance for once.
Try this 2008 nightmare election scenario on for size: Clinton vs. Giuliani

I know I'll be pulling the third-party lever.
vinnie97

join:2003-12-05
Mesquite, TX

Re: No problem

Amen to that.

DaveNJ
No Fear

join:1999-09-01
New Jersey
·Comcast
·Patriot Media
·Cingular Wireless

said by rdmiller See Profile :

AT&T will eventually get it anyway. They'll just wait for the next Republican president, then buy both Qwest and Verizon. No need to bother with the auction. Too messy!
Wait, how many ways are there to get data. I am all for more consolidation. You can get phone from 3-8 providers. And alot of pro business things happened under Clinton. The politicians speak on thing, and do a complete different thing. Doesnt matter liberal conservative, there the same.
grandpinaple

join:2006-01-03
New York, NY
Are you kidding me? Verizon has more money than AT&T and Quest combined.
rdmiller

join:2005-09-23
Richmond, VA

Re: No problem

said by grandpinaple See Profile :

Are you kidding me? Verizon has more money than AT&T and Quest combined.
Verizon is spending theirs hand-over-fist on FIOS. AT&T is lurking in the weeds, waiting to pounce. It only takes one bad quarter for some wise guy to suggest that Verizon is "in play".
grandpinaple

join:2006-01-03
New York, NY

Re: No problem

They have been at it for 3 years already. Verizon isn't stupid they are keeping their dividends high despite their massive infrastructure investment. AT&T won't be able to merge their way into this cake. AT&T can't have their cake and eat it this time to. Why would Verizon want to be apart of a giant infrastructure dinosaur that is probably going to be knee deep in the red when DOCSIS 3.0 kicks uverse into the toilet.

montero

@verizon.net
Not even close. Verizon VZ has a market cap of 128.50 Billion. AT&T T has a market cap of 252.31 Billion which makes AT&T worth almost twice as much as Verizon.
grandpinaple

join:2006-01-03
New York, NY

Re: No problem

They may have assets twice as much, but Verizon has revenue 1.5 times greater.

montero

@verizon.net

Re: No problem

You have it reversed for 2006 AT&T made 9 Billion net. income compared to Verizons 6 billion.
grandpinaple

join:2006-01-03
New York, NY

Re: No problem

I was talking about total revenue and no Verizon still made 6 billion net of which 4 was paid in dividends and AT&T made 7.
gopnick

join:2005-01-07
Benton, AR
·Charter Pipeline
·AT&T DSL Service
·Alltel Axess
·Cingular Wireless
·AT&T Yahoo

said by rdmiller See Profile :

AT&T will eventually get it anyway. They'll just wait for the next Republican president, then buy both Qwest and Verizon. No need to bother with the auction. Too messy!
You learned about economics in a public school, didn't you?

S_engineer

join:2007-05-16
Chicago, IL
·Comcast

What a maggot

"Despite the fact that Stephenson calls the spectrum "beachfront property" and concedes that they won't find better spectrum anytime soon"...

Way to go Darth...just sue your way to the top!
--
Burn a tire, but make sure you buy that carbon offset!
openbox9

join:2004-01-26
Alexandria, VA
·AT&T Southeast

Re: What a maggot

said by S_engineer See Profile :

Way to go Darth...just sue your way to the top!
How can you possibly twist AT&T's comments about prime spectrum and them possibly not bidding for the spectrum into lawsuits?

S_engineer

join:2007-05-16
Chicago, IL
·Comcast

Re: What a maggot

I'm giving a generalization on how ATT intends on becoming Americas top provider. The spectrum offers for another piece of the puzzle to be put in place, but no; they'd rather rely on antiquated copper, ugly vrads and lawsuits to take the title!

»www.geneva.il.us/att/Lightspeed.htm

»arstechnica.com/articles/culture/u-verse.ars

»www.saschameinrath.com/node/400

Thats just in my neck of the woods...
--
Burn a tire, but make sure you buy that carbon offset!

calvoiper

join:2003-03-31
Belvedere Tiburon, CA

So far behind the curve....

What this "announcement" really means is twofold:

First, ATT realizes that it can't compete in an open new wireless market--it's a hopeless dinosaur incapable of recognizing and bringing to market new ideas in time to win market share. Therefore, it must control the spectrum, which controls the market, to succeed.

Second, ATT is totally abandoning the concept of common carriage--they only want your wireless device to carry what they allow. While this may seem to be part of this developing market, think where we'd be if ATT had only allowed phone calls to the ATT owned grocery store, the ATT owned flower shop, the ATT owned pizza parlor, etc. We'd be looking at a very different economy.

calvoiper
--
VoIP--the death knell of remaining voice monopolies!

LiamJunket
Premium
join:2002-03-03
Ocean City, NJ
·Comcast

Re: So far behind the curve....

said by calvoiper See Profile :

ATT realizes that it can't compete in an open new wireless market--it's a hopeless dinosaur incapable of recognizing and bringing to market new ideas in time to win market share. Therefore, it must control the spectrum, which controls the market, to succeed.

calvoiper
What it means is that under the auction rules, if the "open access" part of the 700mhz spectrum doesn't garner a bid north of $4.9 billion, the spectrum will be pulled off the market and then rebid without the "open access" rules. So I suspect Verizon & AT&T will hold back unless some other big money company(Google ??) bids on it. Only then will they step in if they have to.
--
--
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Jigsaw
Stardust We Are
Premium
join:2000-10-21
Cleveland, OH
·Cox HSI

Lost

"Despite the fact that Stephenson calls the spectrum "beachfront property" and concedes that they won't find better spectrum anytime soon, he says that they need to run more numbers and create a proper business model before committing to the auction."

They can't even run a proper Business Model now!Hey att lobbying the fuck out of the Government is not a business Model.But you seem to like it alot.I have a good idea why not make shit people really want-innovate-God forbid you may save a few bucks paying the whores(congressmen)to do your work.
--
»www.auralmoon.com/ Stimulating ears for 7 years
wombough

join:2001-08-30
Beaufort, SC

att and verizon

and quest will eventually merge and form bell once again. They are the only 3 baby bells left. But one can no buy the other they are too big they can only hope to merge as equals!
fiberguy
My views are my own.
Premium
join:2005-05-20

Suggestion for at&t...

..."Despite the fact that Stephenson calls the spectrum "beachfront property" and concedes that they won't find better spectrum anytime soon, he says that they need to run more numbers and create a proper business model before committing to the auction."

... Take your sweet time.. take all the time in the world and run your numbers - and when the auction is over and they're still running numbers, then maybe there will ultimately be an alternative to what is the market today.

Wireless is wireless is wireless today. You get a phone that is over priced and inflated and usually doesn't quite get the task right (as in it's usually missing a feature or two that people are calling for), a service that is inconsistent based on location, locked into a VERY overpriced plan that always falls short of at least one of the user's needs, overly priced add-ons such as text message plans, and crappy customer service that could care less about talking to you in the first place. Slap a name on that such as at&t, sprint, or verizon, and you have what we call in America, "Mobile Phones"...
--
"Complaining is the least path of resistance for the self-serving, the lazy, and I’m told it’s a woman’s prerogative..."

MrMoody
Liberal Capitalist

join:2002-09-03
Smithfield, NC
·Skype
·magicjack.com

Re: Suggestion for at&t...

said by fiberguy See Profile :

when the auction is over and they're still running numbers, then maybe there will ultimately be an alternative to what is the market today.
No, because Verizon and Sprint will own the spectrum and it will be business as usual. Competitive internet pipe, don't make me laugh.
--
"It is a future in which globalization really does work ... and everybody winds up getting to be part of the third world." - William Gibson
hottboiinnc
ME

join:2003-10-15
Toledo, OH
·buckeye cable

Re: Suggestion for at&t...

If thats the case then how can in the UK mobile phones be cheaper than here? »threestore.three.co.uk/mixnmatch···&id=1201 even with conversion to US dollars their plans are still cheaper than here. 1100 minutes for roughly $56 USD thats a steal per month.

MrMoody
Liberal Capitalist

join:2002-09-03
Smithfield, NC

Re: Suggestion for at&t...

Because Europe has a standardized, open system with true competition.
benc
Premium
join:2007-06-17
Glen Carbon, IL
·Charter Pipeline
·Future Nine Corpor..
·Callcentric
·AT&T Midwest

said by fiberguy See Profile :

Wireless is wireless is wireless today. You get a phone that is over priced and inflated and usually doesn't quite get the task right (as in it's usually missing a feature or two that people are calling for), a service that is inconsistent based on location, locked into a VERY overpriced plan that always falls short of at least one of the user's needs, overly priced add-ons such as text message plans, and crappy customer service that could care less about talking to you in the first place. Slap a name on that such as at&t, sprint, or verizon, and you have what we call in America, "Mobile Phones"...
Mobile Phones cost more because they're mobile. It's what you pay for.

It's why laptops cost more than a comparable desktop machine, even after you factor in the cost of the LCD.

Anything that's mobile will cost more than the non-mobile equivalent.
fiberguy
My views are my own.
Premium
join:2005-05-20

1 edit

Re: Suggestion for at&t...

Gee.. thanks for the lesson... even if you are incorrect in your answer.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest

This is a ploy....

This is simply a ploy. They want the spectrum alright, they just want it free of ANY regulations or restrictions, and free from any open devices/access requirements.

What they are doing here is threatening to take their ball and leave Eric Cartmen style. "Screw you guys... I'm going home..."

Basically they are trying to get things the way they want them. "Our way, or the highway."

If Google or someone else big makes a bid for the spectrum above the minimum, I can assure you that all of a sudden AT&T's "numbers" will come up green and they'll be in to win.

They're hoping that the Auction fails and then the conditions are stripped, or that maybe their threat of not bidding will pressure the FCC's to change the rules and regulations for the Auction spectrum at this late hour.
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!)
Forums » AT&T Hesitates About Joining Spectrum Auction


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