Spectrum Prices Down?

The wireless spectrum auction is next Wednesday, and analysts from UBS have a taken a look at the data and given us some of their thoughts. A key point is that the analysts predict that the overall prices paid for spectrum are likely to be lower compared to prior auctions, given the large amount of spectrum for sale is bigger than the demand from wireless carriers.

“We estimate that Auction 66 will bring in net proceeds of $7 to $10 billion, which equates to roughly $0.25-$0.40 per MHz/per POP.” Other estimates had previously put the total government take away as high as $15 billion.

The report also says that T-Mobile could be an aggressive bidder, as it tries to reverse its position as the weakest spectrum holder among the national operators. And Wireless DBS (the consortium tied to Echostar and DirecTV among others) is also likely to be an aggressive bidder, says UBS.

The lower prices are good news for the bidders, but not so great news for the government, which gets the proceeds. We’ll bring you more next week, before the big day.