Wells Fargo Expects Verizon, AT&T to Dominate C-Band Auction

Midband spectrum will be the differentiator among carriers as 5G unfolds, with Verizon and AT&T likely to be the big spenders in the upcoming C-band auction, Wells Fargo’s Eric Luebchow told investors Monday. He forecast that Verizon will spend more than $21 billion in the auction, and AT&T $8 billion. T-Mobile “will likely continue to have after the C-band auction, the industry's leading sub-6 GHz portfolio,” he said. By the time the C band is built out, T-Mobile “will have a mid-band 5G network to the vast majority of the U.S.,” he said. Wells Fargo predicted Verizon’s share of the postpaid market will be steady at 43% over the next five years, while T-Mobile will increase its share from 28% to 31%, mostly at the expense of AT&T. “As they rapidly build out a nationwide 5G mid-band network, [T-Mobile] will be the predominant share-taker and only true ‘growth’ story in an otherwise mature marketplace,” Luebchow said.