Sprint Plans to Sit Out Next US Auction of Airwaves

Sprint said it plans to sit out a coming auction of wireless airwaves, a decision that will save the carrier billions of dollars but could deprive its network of upgrades in the future.

The Federal Communications Commission has scheduled a major auction for March 2016. The US government plans to buy airwaves from TV broadcasters that it will then resell to wireless carriers. Sprint said that its airwaves at present are “sufficient to provide its current and future customers great network coverage.” The US wireless carrier is about to commence on another major network overhaul it says will sharply improve data speeds. Sprint’s decision not to participate removes a major player from an auction that is the centerpiece of FCC Chairman Tom Wheeler’s tenure. T-Mobile US, Verizon and AT&T are unlikely to drop out of the bidding. The auction will be a success only if carriers are willing to pay enough money to encourage TV broadcasters to part with their airwaves, or spectrum.