The auction for spectrum licenses on the C-Band, a mid-band spectrum between 3.7 and 4GHz, kicked off this week and as expected US carriers bid eagerly in hopes of utilizing the spectrum to vastly improve their 5G networks. Experts agree that mid-band frequencies are critical for 5G usability, since they can provide both improved speeds vs 4G LTE while also providing better coverage than the superfast but extremely limited millimeter wave bands used by Verizon and AT&T.
Day 1 of the auction generated more than $1.9 billion in gross proceeds. The auction offers 280-megahertz of spectrum, with 5,684 licenses available. After Round 2, the average nationwide price per MHz-POP was $0.022438, according to auction results tracking by BitPath COO Sasha Javid.
Wall Street firm MoffettNathanson emphasized just how critical the C-band auction is for carriers.
“Today opens what may be the most important wireless auction of our time. Who ‘wins’ the C-Band auction will shape the competitive dynamics of 5G for a decade,” wrote MoffettNathanson analysts.
The winners of the auction remain to be revealed, but Verizon secured $12.5 billion in financing ahead of the auction and is expected to be the most aggressive participant.