Lifting Of FCC's Spectrum Quiet Period Will Be A Catalyst For Further M&A

M&A Wave 'Round The Corner

The firm noted that the FCC released the final results of the 600 MHz incentive auction on April 14, 2017. The firm believes the quiet period around the auction has limited the auction participants from discussing M&A.

"The lifting of the quiet period will most likely be a catalyst for further M&A within the space. We expect the FCC to lift the quiet period in 1–3 weeks," the firm opined.

The Winners Are...

Elaborating on the results of the auction, the firm said T-Mobile US Inc TMUS was the top bidder, securing $8 billion in spectrum assets. Other large bidders included DISH Network Corp DISH, AT&T Inc. T, Comcast Corporation CMCSA and private equity firms.

Height Securities also noted that total auction proceeds were $19.8 billion, with an average clearing price of $1.25 MHz/pop.

Verizon Stays Out

Verizon Communications Inc. VZ did not participate in the auction, reasoning it would invest in technology to improve coverage, rather than buying wireless air waves, which is turning out to be an expensive proposition.