Verizon Communications (VZ) as expected emerged as the highest bidder for 5G wireless spectrum in the telecom industry’s most expensive auction ever, followed by AT&T (T) and T-Mobile US (TMUS). Verizon stock edged down in extended trading on Wednesday while T-Mobile stock popped.
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The Federal Communications Commission released auction bidding results after the market close. Bidding through an entity called Cellco Partnership, Verizon spent $45.45 billion in the 5G auction.
AT&T spent $23.4 billion in the 5G auction while T-Mobile ponied up $9.3 billion. Cable TV companies Comcast (CMCSA) and Charter Communications (CHTR) were not among the top bidders, nor was satellite TV broadcaster Dish Network (DISH).
Verizon stock was off 0.7% to 56.70 in extended trading on the stock market today. T-Mobile stock popped 4.8% to near 125.
Analysts say Verizon and AT&T will add substantial debt as the highest bidders in the 5G auction. That could give T-Mobile a boost because it will have more leeway to make other network investments.
Verizon Stock: Telecom Trailed T-Mobile in 5G Mid-Band Spectrum
AT&T stock slipped 0.5% to 29.25 in extended trading.
The FCC said 5G auction spending by 21 bidders totaled $81.14 billion. That doesn’t include roughly $13.2 billion in relocation costs and incentive payments to satellite operators. They currently use the radio spectrum.
The 5G auction started on Dec. 8 and continued through early January.
Verizon, AT&T and T-Mobile are building out mobile 5G wireless networks using low-band airwaves. But those 5G services aren’t much faster than existing 4G networks. To get the fastest 5G wireless speeds, wireless firms need mid-band or high-band frequencies.
T-Mobile owns the most mid-band spectrum for 5G wireless thanks to its acquisition of Sprint last year.
C-Band airwaves reside in the 3.7- to 3.9-gigahertz frequency bands. Further, roughly 280 megahertz of spectrum was up for auction.
The telecom industry’s biggest auction previously occurred in 2014. That year, companies spent $44.9 billion in the “AWS-3” auction, or Advanced Wireless Services.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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