Wireless Providers Poised to Win Spectrum Licenses

(reg required) NYT has come out with an article about the US spectrum auction, which can be summarized with this quote: “The kings of the hill defended the hill,” said Roger Entner, a wireless industry analyst at Ovum, a telecommunications consulting firm. “The dream of another wave of new entrants has died.”
The new entrants have found that the bids are too high to be economically feasible — one estimate claims that the satellite TV companies would have taken more than 20 years to get a return on their investment. However, there is also the suggestion that they entered the auction in the first place (or left it early) to increase their bargaining position with the spectrum owners.
“Now the country’s biggest cellular providers appear poised to win many of the 1,122 licenses up for auction, allowing them to expand their reach and reducing the chance that a new entrant might bring down prices…Cable companies would also have to spend billions more to market their service in a country where most people already have cellphones. They would probably attract only about 2.5 million subscribers who would pay about $45 a month, according to estimates by Jason Bazinet, who tracks media and entertainment companies at Citigroup.”