US Spectrum Auction a great news for US mobile consumers
In august this year 90 MHz of valuable spectrum in 1710-1755 MHz band will be auctioned by FCC in
FCC after freeing the spectrum from other government departments like department of defense etc at an expense of nearly 900 million dollars, plans to auction the much needed spectrum for advanced wireless services like 3G data services etc already some estimates suggest that 90 MHz may fetch government up to 35 billion dollars coming close to year 2000 Europe’s 3G auctions in value terms .My thinking is that this spectrum allows for 2 to 3 new nationwide carriers to enter the markets. Already some rumors are there that some of non traditional mobile players like cable service providers (ex: Comcast) may bid for that spectrum .some of these may bid so that they can build assets so that they can start offering converged bundled services. What ever may be the reason one things is for sure is that there is going to be quite good bandwidth available in the market which will start driving competitions and hence prices down.
Another thing that I think will happen is that more and more MVNO will be launched which will drive the cost down that has been the case in most part of Europe .Today without the new spectrum there are were little bandwidth available for launching mvnos but with new players entering the market with auctions they would be willing to sell part of their network bandwidth to MVNO so that they can recover some initial high capital costs, as they would not be able to immediately acquire huge customer base .There are already some MVNO planned in US who are planning to offer advertisement supported services to customers which by definition either allow to provide free or very low cost services .I hope this is just beginning of these kind of services.
So in short by 2007 I hope to see totally different and consumer friendly mobile service landscape in US.