Dolan Family Holdings LLC dropped out of the running for licenses being offered in the New York, New Jersey and Connecticut region for advanced wireless airwaves. The overall bidding has now reached $11 billion total. It has been estimated that it may eventually reach over $15 billion.
Others that have also dropped out were DirecTV Group Inc. (DTV) and EchoStar Communications Corp.(DISH), who entered the auction in a joint venture. They didn't get any of the licenses offered.
There has been a completion 24 rounds of bidding, and Deutsche Telekom AG's T-Mobile USA (DT) currently has the highest bids on 130 licenses, coming in at $3.7 billion. This isn't unexpected as they had a lot less wireless airwaves than their larger competitors and were expected to be more aggressive in their bidding.
Another joint venture between Verizon Communications (VZ) and Vodafone Group Plc.(VOD), called Verizon Wireless, is in second place with winning bids on four licenses totalling $2.8 billion.
"Analysts have said media companies were likely bidding in the wireless sale in an effort to complement existing services. Telephone, cable and satellite companies are competing to provide customers with a package of television, high-speed Internet and voice communications, including wireless."
Comment Preview