Sprint Plans to Sit Out Next US Auction of Airwaves

However, Sprint is indeed sitting on extra spectrum from its Clearwire acquisition in 2013, so it’s not in desperate need. In August, Sprint lost its position as the third largest carrier to T-Mobile.

Sprint has started a major effort to increase coverage and capacity by densifying its network and increasing the number of cell sites using its existing spectrum.

Sprint Corp (NYSE:S) had its price objective boosted by Sanford C. Bernstein from $4.20 to $4.50 in a report issued on Friday, Marketbeat.com reports. Drahi discussed his hope of acquiring a wireless carrier. Now consumers have more freedom than ever to switch providers, along with entirely new ways of paying for smartphones. Wireless networks in higher frequency bands require more expensive network gear and more radio antennas, analysts say.

The other three major wireless carriers intend to participate in the auction, which has likely eased anxiety at the FCC, since it needs strong carrier participation for a successful auction. AT&T (NYSE:T), Verizon Communications (NYSE:VZ) and satellite TV broadcaster Dish Network (NASDAQ:DISH) won the most spectrum in the AWS-3 auction.

Padden may have a point, and here’s why: The airwaves at stake here are simply too good to ignore.

T-Mobile has said it would bid in the auction.

Sprint’s decision to sit out the auction of 600MHz wireless airwaves is a somewhat surprising move.

[Sprint: Tough net neutrality rules would be fine by us].

“In our opinion, a delay in the auction is appropriate, as it provides the FCC time to actually answer a whole host of concerns from both sides-broadcast and wireless-and would also be economically beneficial by allowing AT&T, Dish, Verizon, Sprint, T-Mobile etc.to get their finances in gear following a few major M&A and the AWS-3 spectrum auction”. There is a sense of a feeling that the company is probably missing a lifetime opportunity.

Sprint’s announcement has raised fears among analysts the company may be headed in a downward spiral. The success of next year’s auction process will come down to the amount; interested carriers are willing to spend.

Vodafone (VOD) and Liberty Global (LBTYA – Get Report) fell after the companies said Monday they had failed to agree on valuations and had abandoned talks about a swap of business assets in Europe’s converging mobile phone, broadband and TV markets. “Eventually, their only way out will be to find a merger partner”. The company is witnessing annual losses since 2007.

“Denver is a microcosm of what we want the rest of the country to be”, Sprint CEO Marcelo Clare recently said at Goldman Sachs’ big wireless conference. That’s where a cellular carrier like Sprint could fill the gaps.

Instead of beefing up its airwave portfolio, the company says it will focus on improving services on the frequencies it already owns.