Auction 901 Stakes are High for Rural Wireless Companies

[Commentary] Rural wireless carriers, it is time to dust off your auction strategy playbook (and maybe your chief auction strategist too) because Auction 901, the Federal Communications Commission’s very first reverse auction, is coming at you on September 27, 2012.

Though that seems like a long way away, any wireless carriers interested in grabbing a slice of the $300m Mobility Fund Phase I support would be wise to start planning now, as the FCC is proposing a variety of rules and procedures for these auctions that will require considerable scrutiny. Although winning Mobility Fund Phase I support could be a tremendous benefit for some small wireless carriers, the proposed rules appear chock-full of restrictions, requirements, and various pitfalls. The stakes are indeed high. By winning, rural wireless carriers could expand their footprint, obtain a competitive advantage in a new or existing service area, and gain valuable insight and experience to utilize in future reverse auctions. However, in order to play, small carriers quite literally have to “bet the farm,” have access to sufficient spectrum, and comply with a host of not-yet solidified rules, requirements and obligations. Finally, losing the auction could mean a competitor will gain the advantages mentioned above and potentially get USF support for an area you may have planned to deploy service.