The latest USA spectrum auctions just concluded yielded $44.9Bn mostly for 2X25MHz of AWS spectrum. The most sought paired bands 1755 to 1780MHz and 2155 to 2180MHz are adjacent to the standard AWS Band 4 see all bands list here
The price per MHz per head of population (MHz/Pop) covered for the paired spectrum was $USD2.65. This compares with around $USD0.46 for the original 2X45MHz of AWS spectrum when it was auctioned in 2006 and 2008.
The last Australian auctions for 700 and 2600MHz 4G spectrum which concluded in May 2013 yeilded $AUD1.965Bn. There was much debate at the time that the government set reserve for the prime “water front” 700MHz spectrum at $311M per 2X5Mhz lot was to high and subsequently 2X15MHz was passed in at auction. The portions of 700MHz which were sold went for the reserve price which amounts to $AUD1.35 /MHz/Pop. The AWS3 USA spectrum license is for 12 years and the Australian ones including the 700MHz are for 15 years.
Considering that by any measure the Band 28 APT 700MHz spectrum is far more desirable compared to USA AWS 2100/1700 MHz the price set now looks more like a bargain by comparison. Of course the real bargain in Australia was the 2600MHz 2X70MHz of which was sold for $98M which is just 3 cents /MHz/Pop.
The message is that wherever you look cellular spectrum is more in demand and (especially for low band lots) significantly more valuable. Like water fronts they don’t make any more.
Following the expiry of the “quiet time” after the AWS3 auction AT&T has joined the chorus of critics of the auction rules and outcome, warning that frequencies should go to companies that are willing to deploy networks – “not speculators or stockpilers”.
AT&T were pointing at Dish Networks primarily a satellite Pay TV company which won $13 billion worth of licences with a $3 billion ’small business’ discount,” Dish with around $14Bn p.a. in earnings would hardly qualify as a small business in most places.