T-Mobile, Sprint Likely to Be Cautious in High-Frequency Auctions, Analyst Says

With their deal in the works, T-Mobile and Sprint are likely to be cautious in the upcoming 28 and 24 GHz auctions, Macquarie’s Amy Yong wrote investors Thursday. “Both will look to participate,” the analyst forecast. “T-Mobile has confirmed its interest and filed a letter asking the FCC to allow it to enter the auctions, while Sprint views mmWave as complementary to its [approximately] 150 MHz of 2.5 GHz spectrum. But, despite protections in place against sharing sensitive competitive info, there could be hesitation to participate at a large scale given the deal’s pending regulatory review. We continue to see the potential for a new class of 5G winners, including New T-Mobile.” Verizon has lots of millimeter-wave spectrum and is likely to participate “opportunistically,” Yong said. While AT&T has more than 375 MHz of 39 GHz in the top 100 markets from its FiberTower, “it will participate in the auctions,” she thinks. Non-carriers also could jump in, she said: “Comcast/Charter’s participation could mean a larger commitment to wireless, while tech could bring new 5G players. We note that Google met with the FCC regarding the C-Band initiative.” Yong said all of the spectrum set for auction by the FCC, including the C-band, has negative implications for Dish Network stockpile of frequency-use rights.