Citigroup, New Street Disagree on First High-Band Auctions

Citigroup saw surprising some results of the 24 and 28 GHz auctions, released Monday (see 1906030063). “Verizon extended its leading position in the 28 GHz band while T-Mobile and AT&T bought nationwide footprints at 24 GHz,” Citi's Michael Rollins told investors. “US Cellular was a surprisingly sizable bidder in both auctions, largely within its existing footprint. Starry was also a meaningful winner.” Rollins said that “broad-based participation by three of the four national carriers, US Cellular, and Starry reinforce prospects for positive business cases for millimeter wave spectrum.” T-Mobile won nationwide spectrum at 24 GHz “despite public comments about the usability of mmWave spectrum outside of dense urban areas," the analyst said. New Street’s Jonathan Chaplin said wireless players can now freely negotiate deals, at least until the next auction starts Dec. 10. “Results seem to support the view that mmWave has very limited utility,” Chaplin wrote: “There were dozens of sophisticated participants and dozens more that didn’t show up; we would assume they are all similarly well placed to assess the utility of mmWave as Verizon and AT&T.”