How Much Will the FCC’s Airwaves Auction Raise?

The Federal Communications Commission’s upcoming auction of unused TV airwaves has been projected to bring in $60 billion to $80 billion dollars for the US Treasury. But with several major wireless providers shying away, that figure may be out of reach. The FCC will use the auction this spring as a way of opening up more licenses to feed the increasing demand for the nation’s airwaves, which are increasingly crowded with LTE networks, the Internet of Things, and high consumer demand for mobile data. When the FCC filed its procedures for the auction on Aug. 11, it cited a statistic from the Expanding Opportunities for Broadcasters Coalition that put the expected revenue at $60 billion to $80 billion. Financial group SNL Kagan calculated the estimate. Since then, some analysts are asking how they will get there.

Sprint, one of the major carriers that might have bid for some of these airwaves, said they plan to not participate in the auction. One of the nation’s largest wireless providers, Verizon, has also downplayed its potential involvement in the auction. Nonetheless, FCC Chairman Tom Wheeler said that he thinks the auction will be “very successful.” The moves from Sprint and Verizon are “pre-auction shenanigans that one can expect happens in any kind of marketplace.”