MVDDS Auction Tops $100M
By Ted Hearn published
The Federal Communications Commission's current spectrum auction topped $100 million Tuesday, fueled by a bidding war between firms backed by EchoStar Communications Corp. and Cablevision Systems Corp.
The FCC is selling 214 licenses -- roughly one for each TV market -- that winning bidders may use to provide dozens of channels of video programming and high-speed data service, a combination the agency calls multichannel-video-distribution and data service (MVDDS).
After 17 rounds in an auction that began Jan. 14, the commission has collected $121.6 million in bids, led by South.com LLC with $75.2 million committed for control of 29 license. South.com is 49.9%-owned by EchoStar, which is controlled by CEO Charlie Ergen.
Trailing South.com was DTV Norwich LLC with $37.5 million pledged for 46 licenses. Cablevision's satellite arm, Rainbow DBS, owns 49% of DTV Norwich. Cablevision, the No. 6 cable MSO, is controlled largely by chairman Charles F. Dolan.
South.com and DTV Norwich are leading the pack. The third-highest bidder was MDS Operations Inc., which had pledged $4.8 million for 48 licenses covering small and midsized markets.
MVDDS auction revenue has exceeded expectations. Sen. John McCain (R-Ariz.) estimated that the FCC would take in about $100 million.
The agency plans to shut down the auction when bidding rounds -- which are occurring electronically -- fail to generate new high bids.
The smarter way to stay on top of the multichannel video marketplace. Sign up below.
Thank you for signing up to Multichannel News. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.