T-Mobile, Dish bid total $14 billion in U.S. airwaves auction: FCC

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NEW YORK T-Mobile US Inc (TMUS.O) bid $8 billion and Dish Network Corp (DISH.O) $6.2 billion to win a bulk of promote airwaves spectrum for sale in a supervision auction, a U.S. Federal Communications Commission pronounced on Thursday.

The dual carriers accounted for many of a $19.8 billion in winning bids, a FCC said. Comcast Corp (CMCSA.O) concluded to acquire $1.7 billion in spectrum, ATT Inc (T.N) bid $910 million and investment organisation Columbia Capital offering $1 billion.

The FCC pronounced 175 promote stations were offered airwaves to 50 wireless and other telecommunications companies. Companies devise to use a spectrum to build new networks or urge existent coverage.

The spectrum auction’s finish is widely approaching to flog off a call of deal-making in a telecom industry. Until now, companies participating in a auction have been calm by a still period, though that will finish after Apr 27, when down payments are due from auction winners.

T-Mobile pronounced a $8 billion winning bid would capacitate it “to contest in each singular dilemma of he country.” The company, tranquil by Deutsche Telekom AG (DTEGn.DE), pronounced a investment will quadruple a low-band holdings.

Verizon Communications Inc (VZ.N) and Sprint Corp (S.N) opted not to bid.

“What is many engaging to us was (Verizon) was nowhere to be found,” Jennifer Fritzsche, an researcher during Wells Fargo, pronounced in a investigate note, adding that “we continue to trust Verizon’s interests lay in a aloft rope spectrum assets.”

Craig Moffett, an researcher during MoffettNathanson, pronounced in an email that there were 3 surprises in a results: “Comcast bought reduction than expected, Dish Network bought more, and Verizon bought zero during all.”

Dish shares fell 2.5 percent to tighten during $62.38. Comcast, Verizon and ATT were down reduction than 1 percent during marketplace tighten while T-Mobile rose marginally.

Moffett pronounced Dish’s spectrum spending underscored “the flourishing significance of a company’s gratefulness as it relates to their spectrum holdings.”

Comcast sole spectrum from 3 of a NBCUniversal owned stations in New York, Philadelphia and Chicago for $481.6 million.

The FCC also announced new channel assignments for 957 non-winning stations that contingency change channels to transparent a new wireless airwaves for use.

Of a $19.8 billion bid, some-more than $7 billion will go to revoke a U.S. necessity and $10.05 billion to broadcasters relinquishing spectrum. Up to $1.75 billion will go to broadcasters that catch costs in changing channels.

Sellers had primarily sought $86.4 billion for 126 megahertz. Many analysts had approaching broadcasters to acquire some-more and sell some-more spectrum.

(Editing by Steve Orlofsky and Tom Brown)

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