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August 29, 2006

The New York Times checks in on who made out in the recent FCC AWS spectrum auction. While touted as a chance for pesky upstarts or wistful third-pipe competitors like DirecTV to grab much needed spectrum, the paper notes it was the incumbent wireless providers who walked away from the auction happy.
"Of the $13.3 billion in bids registered thus far, $2.2 billion has come from the cable providers, bidding together in a consortium with Sprint, the third-largest cellular carrier. But about 60 percent of the total bids have come from Cingular, Verizon Wireless and T-Mobile, the first-, second- and fourth-largest cell phone companies. T-Mobile has bid nearly $4 billion, mostly for licenses in major metropolitan areas, while Cingular and Verizon have sought licenses that cover broader regions."
"The kings of the hill defended the hill," says one wireless industry analyst in the piece. "The dream of another wave of new entrants has died."