Analysts: AT&T could spend $20-22 billion in AWS-3 auction, more than Verizon

New Street Research analysts wrote that AT&T will have $21.8 billion of liquidity and it will likely spend the "vast majority" of it on spectrum in the AWS-3 auction.

"We believe AT&T is raising capital to fund spectrum purchases; however, they will also need $15 billion to close the DirecTV transaction, which they expect to do in May," the analysts wrote. "We expect the company will need to come to the market again to raise funds for the DirecTV transaction." The New Street analysts had previously assumed AT&T and Verizon would spend around $15 billion to $20 billion each in the AWS-3 auction, in which 65 MHz is up for grabs, including 50 MHz of paired spectrum. They also thought T-Mobile would spend $2 billion to $3 billion and Dish Network would spend $2 billion to $6 billion. However, they noted that based on AT&T's capital raise, "it looks like AT&T may purchase $20-22 billion" whereas Verizon may purchase less spectrum.