FCC's repacking effort may far exceed 39 months: Guggenheim

It may take much longer for wireless carriers to deploy services on their new 600 MHz spectrum than previously thought. Bidders committed more than $19.63 billion for TV broadcasters’ airwaves during the Federal Communications Commission’s incentive auction, which ended last spring, with T-Mobile leading the way by spending $8 billion on 600 MHz licenses.

Operators have repeatedly urged the agency to stick to the 39-month repacking plan it has allotted to reshuffle TV broadcasters’ airwaves for wireless use to avoid interference problems as the spectrum is redeployed. But clearing those airwaves for wireless use may actually take twice that long, Robert Gutman of Guggenheim Equity Research wrote this week, citing a recent report from Inside Towers. “As part of the 600 MHz auction, broadcasters have 39 months to move the antennas needed for the television channel repack. However, Vertical Technology Services (a Maryland provider of tower services) estimates that only 14 crews are qualified for the work,” Gutman said in a note to investors. “As such, Kevin Barber, CEO of Tower King II, believes the repack could take five to seven years. If this estimate is correct, it means the towers may not benefit from the rollout of 600 MHz in the immediate future.”