Received: from delta.eecs.nwu.edu by MINTAKA.LCS.MIT.EDU id aa20756; 17 Mar 95 15:35 EST Received: by delta.eecs.nwu.edu (4.1/SMI-4.0-proxy) id AA08076; Fri, 17 Mar 95 09:17:16 CST Return-Path: Received: by delta.eecs.nwu.edu (4.1/SMI-4.0-proxy) id AA08054; Fri, 17 Mar 95 09:17:11 CST Date: Fri, 17 Mar 95 09:17:11 CST From: telecom@delta.eecs.nwu.edu (TELECOM Digest (Patrick Townson)) Message-Id: <9503171517.AA08054@delta.eecs.nwu.edu> To: telecom Subject: PCS Auction Results and Analysis Bob Keller has kindly provided us with an analysis of the PCS auction results of March 13, and this special report is being sent out for your review over the weekend as a special mailing since it is too large for a regular issue of the Digest. PAT Date: Tue, 14 Mar 1995 00:20:07 -0500 (EST) From: Bob Keller Subject: PCS Auction Analysis ====================================================== A BRIEF ANALYSIS OF THE PCS AUCTION RESULTS (3-13-95) ====================================================== Prepared by Robert J. Keller, P.C. ------------------------------------------------------ CONTENTS: ITEM 00: Introduction ITEM 01: Final Round Bidding Results ITEM 02: Comparative Value of the MTAs ITEM 03: Bidder-by-Bidder Analysis ========================================================================== ITEM 00: Introduction ========================================================================== The FCC has finally completed the auction of 99 Broadband PCS licenses in 51 MTAs. After only barely breaking the $7 billion barrier last week, the FCC had scheduled three bidding rounds for each day of this week, but did not make it through all three on Monday. No new bids were received during Round 112, the third schedulded for Monday, March 13, and the Commission declared the acutions closed. The final total bid amount for all 99 licenses was $7,019,403,797. - RJK - ========================================================================== ITEM 01: Final Round Bidding Results ========================================================================== The following tabulation shows the final round bidding results, including the MTA population and a calculated dollars per MHz-Pop figure. I have used dollars per MHz-Pop because this was the basis for the upfront payments submitted at the beginning of the auction ($0.02 per MHz-Pop), and because it provides a factor for comparing these values to that of other types of spectrum. If you prefer to think in terms of dollars per pop, simply multiply the figure in the $/M-P column below by 30. MTA# Population $/M-P Winning Bid Winning Bidder ----- ---------- ----- ------------ ------------------------------ M001B 26,410,597 $0.56 $442,712,000 WirelessCo, L.P. M002B 19,145,232 $0.86 $493,500,000 Pacific Telesis Mobile Service M003A 12,069,700 $1.03 $372,750,000 AT&T Wireless PCS Inc. M003B 12,069,700 $1.06 $385,050,583 PCS PRIMECO, L.P. M004A 11,891,177 $0.58 $206,500,000 WirelessCo, L.P. M004B 11,891,177 $0.57 $202,150,000 Pacific Telesis Mobile Service M005A 10,001,009 $0.27 $81,177,000 AT&T Wireless PCS Inc. M005B 10,001,009 $0.29 $86,107,000 WirelessCo, L.P. M006A 9,752,317 $0.23 $66,616,000 AT&T Wireless PCS Inc. M006B 9,752,317 $0.24 $70,907,001 BellSouth Personal Communicati M007A 9,694,157 $0.30 $87,500,578 PCS PRIMECO, L.P. M007B 9,694,157 $0.30 $88,444,000 WirelessCo, L.P. M008A 9,452,712 $0.43 $121,660,000 AT&T Wireless PCS Inc. M008B 9,452,712 $0.45 $127,065,892 WirelessCo, L.P. M009A 8,927,748 $0.30 $80,951,000 AT&T Wireless PCS Inc. M009B 8,927,748 $0.32 $84,995,012 PhillieCo, L.P. M010B 7,777,875 $0.91 $211,771,000 AT&T Wireless PCS Inc. M011A 6,942,084 $0.95 $198,411,000 AT&T Wireless PCS Inc. M011B 6,942,084 $0.89 $184,660,483 GTE Macro Communications Corpo M012A 5,986,039 $0.22 $39,674,673 WirelessCo, L.P. M012B 5,986,039 $0.20 $36,600,012 American Portable Telecommunic M013A 5,417,788 $0.55 $89,786,837 American Portable Telecommunic M013B 5,417,788 $0.61 $99,327,723 PCS PRIMECO, L.P. M014A 5,190,849 $0.54 $83,888,837 American Portable Telecommunic M014B 5,190,849 $0.53 $82,680,425 PCS PRIMECO, L.P. M015A 5,136,581 $0.85 $131,723,000 WirelessCo, L.P. M015B 5,136,581 $0.82 $126,020,126 PCS PRIMECO, L.P. M016A 4,945,749 $0.59 $87,000,000 Ameritech Wireless Communicati M016B 4,945,749 $0.58 $85,881,000 AT&T Wireless PCS Inc. M017A 4,925,269 $0.64 $93,949,001 WirelessCo, L.P. M017B 4,925,269 $0.61 $89,475,484 PCS PRIMECO, L.P. M018A 4,716,665 $0.30 $41,932,000 AT&T Wireless PCS Inc. M018B 4,716,665 $0.30 $42,733,483 GTE Macro Communications Corpo M019A 4,663,926 $0.85 $118,836,000 AT&T Wireless PCS Inc. M019B 4,663,926 $0.82 $114,325,789 WirelessCo, L.P. M020A 4,541,432 $0.62 $85,043,289 WirelessCo, L.P. M020B 4,541,432 $0.63 $86,000,001 PCS PRIMECO, L.P. M021A 4,102,766 $0.23 $28,719,362 WirelessCo, L.P. M021B 4,102,766 $0.26 $31,665,837 American Portable Telecommunic M022A 3,880,637 $0.55 $64,436,000 WirelessCo, L.P. M022B 3,880,637 $0.55 $64,502,483 GTE Macro Communications Corpo M023A 3,846,210 $0.29 $33,652,000 AT&T Wireless PCS Inc. M023B 3,846,210 $0.29 $33,045,045 PCS PRIMECO, L.P. M024A 3,827,175 $0.93 $106,355,002 GTE Macro Communications Corpo M024B 3,827,175 $0.92 $105,163,484 WirelessCo, L.P. M025A 3,623,846 $0.52 $56,899,000 AT&T Wireless PCS Inc. M025B 3,623,846 $0.50 $54,672,000 Centennial Cellular Corp. M026A 3,556,648 $0.46 $49,262,000 AT&T Wireless PCS Inc. M026B 3,556,648 $0.44 $46,577,000 WirelessCo, L.P. M027A 3,510,140 $0.74 $78,347,000 AT&T Wireless PCS Inc. M027B 3,510,140 $0.72 $75,608,434 WirelessCo, L.P. M028A 3,465,226 $0.42 $43,169,000 Powertel PCS Partners, L.P. M028B 3,465,226 $0.42 $43,168,314 Southwestern Bell Mobile Syste M029A 3,244,076 $0.37 $35,597,000 WirelessCo, L.P. M029B 3,244,076 $0.36 $35,278,000 Powertel PCS Partners, L.P. M030A 3,059,948 $0.37 $34,155,030 Western PCS Corporation M030B 3,059,948 $0.37 $34,139,785 WirelessCo, L.P. M031A 3,017,475 $0.78 $70,433,000 WirelessCo, L.P. M031B 3,017,475 $0.79 $71,100,000 Ameritech Wireless Communicati M032A 3,006,139 $0.25 $22,100,031 Western PCS Corporation M032B 3,006,139 $0.23 $21,042,973 WirelessCo, L.P. M033A 2,986,524 $0.61 $54,394,123 WirelessCo, L.P. M033B 2,986,524 $0.58 $51,950,059 PCS PRIMECO, L.P. M034A 2,913,304 $0.27 $23,619,168 WirelessCo, L.P. M034B 2,913,304 $0.27 $23,611,837 American Portable Telecommunic M035A 2,777,046 $0.23 $18,893,000 WirelessCo, L.P. M035B 2,777,046 $0.24 $19,864,000 AT&T Wireless PCS Inc. M036A 2,573,372 $0.59 $45,847,030 Western PCS Corporation M036B 2,573,372 $0.60 $46,179,852 WirelessCo, L.P. M037A 2,274,933 $0.67 $46,000,000 Powertel PCS Partners, L.P. M037B 2,274,933 $0.65 $44,500,544 PCS PRIMECO, L.P. M038A 2,145,561 $0.35 $22,290,000 AT&T Wireless PCS Inc. M038B 2,145,561 $0.34 $22,176,837 American Portable Telecommunic M039A 2,113,890 $0.14 $8,634,030 Western PCS Corporation M039B 2,113,890 $0.14 $8,634,000 AT&T Wireless PCS Inc. M040A 2,051,667 $0.21 $12,732,501 Southwestern Bell Mobile Syste M040B 2,051,667 $0.20 $12,321,000 WirelessCo, L.P. M041A 1,877,478 $0.20 $11,111,111 Western PCS Corporation M041B 1,877,478 $0.23 $13,142,346 WirelessCo, L.P. M042A 1,863,335 $0.10 $5,688,000 Poka Lambro Telephone Cooperat M042B 1,863,335 $0.11 $6,191,000 WirelessCo, L.P. M043A 1,767,391 $0.31 $16,374,000 WirelessCo, L.P. M043B 1,767,391 $0.30 $15,810,000 AT&T Wireless PCS Inc. M044A 1,721,911 $0.21 $10,635,000 AT&T Wireless PCS Inc. M044B 1,721,911 $0.22 $11,149,000 BellSouth Personal Communicati M045A 1,659,273 $0.09 $4,647,000 AT&T Wireless PCS Inc. M045B 1,659,273 $0.10 $5,078,000 Cox Cable Communications, Inc. M046A 1,124,174 $0.13 $4,393,000 AT&T Wireless PCS Inc. M046B 1,124,174 $0.15 $4,901,343 WirelessCo, L.P. M047A 1,108,229 $0.67 $22,361,030 Western PCS Corporation M047B 1,108,229 $0.65 $21,675,432 PCS PRIMECO, L.P. M048A 1,096,396 $0.53 $17,562,369 Southwestern Bell Mobile Syste M048B 1,096,396 $0.51 $16,801,654 WirelessCo, L.P. M049A 550,043 $0.06 $1,000,000 American Portable Telecommunic M049B 550,043 $0.10 $1,650,129 GCI Communication Corp. M050A 176,000 $0.02 $107,000 Poka Lambro Telephone Cooperat M050B 176,000 $0.03 $141,837 American Portable Telecommunic M051A 47,000 $0.15 $214,555 South Seas Satellite Communica M051B 47,000 $0.16 $228,001 Communications International C - RJK - ========================================================================== ITEM 02: Comparative Value of the MTAs ========================================================================== The following tabulation shows the comparative value of each MTA, calculated and ranked on the basis of dollars bid per MHz-pop. The bids received on the two bids in each MTA were combined for purposes of these calculations, with the exception of Washington, Los Angeles, and New York where only one license was auctioned due to the previous pioneer's preference grants. MTA# Market Name Population $/MP Total Bid -------------------------------------------------------------------------- M010 * Washington-Baltimore 7,777,875 $0.91 $211,771,000 M002 * Los Angeles-San Diego 19,145,232 $0.86 $493,500,000 M001 * New York 26,410,597 $0.56 $442,712,000 M003 Chicago 12,069,700 $0.51 $372,750,000 M011 Atlanta 6,942,084 $0.48 $198,411,000 M024 Seattle (Excluding Alaska) 3,827,175 $0.46 $106,355,002 M015 Miami-Fort Lauderdale 5,136,581 $0.43 $131,723,000 M019 St. Louis 4,663,926 $0.42 $118,836,000 M031 Indianapolis 3,017,475 $0.39 $70,433,000 M027 Phoenix 3,510,140 $0.37 $78,347,000 M037 Jacksonville 2,274,933 $0.34 $46,000,000 M047 Honolulu 1,108,229 $0.34 $22,361,030 M017 New Orleans-Baton Rouge 4,925,269 $0.32 $93,949,001 M020 Milwaukee 4,541,432 $0.31 $85,043,289 M033 San Antonio 2,986,524 $0.30 $54,394,123 M017 New Orleans-Baton Rouge 4,925,269 $0.30 $89,475,484 M036 Salt Lake City 2,573,372 $0.30 $45,847,030 M016 Cleveland 4,945,749 $0.29 $87,000,000 M004 San Francisco-Oakland-San Jose 11,891,177 $0.29 $206,500,000 M022 Denver 3,880,637 $0.28 $64,436,000 M013 Tampa-St. Petersburg-Orlando 5,417,788 $0.28 $89,786,837 M014 Houston 5,190,849 $0.27 $83,888,837 M048 Tulsa 1,096,396 $0.27 $17,562,369 M025 Puerto Rico-U.S. Virgin Islands 3,623,846 $0.26 $56,899,000 M026 Louisville-Lexington-Evansville 3,556,648 $0.23 $49,262,000 M008 Boston-Providence 9,452,712 $0.21 $121,660,000 M028 Memphis-Jackson 3,465,226 $0.21 $43,169,000 M030 Portland 3,059,948 $0.19 $34,155,030 M029 Birmingham 3,244,076 $0.18 $35,597,000 M038 Columbus 2,145,561 $0.17 $22,290,000 M043 Nashville 1,767,391 $0.15 $16,374,000 M009 Philadelphia 8,927,748 $0.15 $80,951,000 M007 Dallas-Fort Worth 9,694,157 $0.15 $87,500,578 M018 Cincinnati-Dayton 4,716,665 $0.15 $41,932,000 M023 Richmond-Norfolk 3,846,210 $0.15 $33,652,000 M005 Detroit 10,001,009 $0.14 $81,177,000 M034 Kansas City 2,913,304 $0.14 $23,619,168 M032 Des Moines-Quad Cities 3,006,139 $0.12 $22,100,031 M021 Pittsburgh 4,102,766 $0.12 $28,719,362 M006 Charlotte-Greensboro-Greenville-Ralei 9,752,317 $0.11 $66,616,000 M035 Buffalo-Rochester 2,777,046 $0.11 $18,893,000 M012 Minneapolis-St. Paul 5,986,039 $0.11 $39,674,673 M040 Little Rock 2,051,667 $0.10 $12,732,501 M044 Knoxville 1,721,911 $0.10 $10,635,000 M041 Oklahoma City 1,877,478 $0.10 $11,111,111 M051 American Samoa 47,000 $0.08 $214,555 M039 El Paso-Albuquerque 2,113,890 $0.07 $8,634,030 M046 Wichita 1,124,174 $0.07 $4,393,000 M042 Spokane-Billings 1,863,335 $0.05 $5,688,000 M045 Omaha 1,659,273 $0.05 $4,647,000 M049 Alaska 550,043 $0.03 $1,000,000 M050 Guam-Northern Mariana Islands 176,000 $0.01 $107,000 * Only the Block B licenses were auctioned in MTA Nos. 1, 2, and 10, the Block A licenses having already been awarded pursuant to pioneer's preference grants. - RJK - ========================================================================== ITEM 03: Bidder-by-Bidder Analysis ========================================================================== Finally, the following tables show the aggregate licenses won by each winning bidder. They are ranked in deccending order of the total amount bid. For purposes of these tables, dollars per pop (rather than dollars per MHz-pop) were used. WirelessCo, L.P. ================ MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M001B 26,410,597 $16.76 $442,712,000 M004A 11,891,177 $17.37 $206,500,000 M005B 10,001,009 $8.61 $86,107,000 M007B 9,694,157 $9.12 $88,444,000 M008B 9,452,712 $13.44 $127,065,892 M012A 5,986,039 $6.63 $39,674,673 M015A 5,136,581 $25.64 $131,723,000 M017A 4,925,269 $19.07 $93,949,001 M019B 4,663,926 $24.51 $114,325,789 M020A 4,541,432 $18.73 $85,043,289 M021A 4,102,766 $7.00 $28,719,362 M022A 3,880,637 $16.60 $64,436,000 M024B 3,827,175 $27.48 $105,163,484 M026B 3,556,648 $13.10 $46,577,000 M027B 3,510,140 $21.54 $75,608,434 M029A 3,244,076 $10.97 $35,597,000 M030B 3,059,948 $11.16 $34,139,785 M031A 3,017,475 $23.34 $70,433,000 M032B 3,006,139 $7.00 $21,042,973 M033A 2,986,524 $18.21 $54,394,123 M034A 2,913,304 $8.11 $23,619,168 M035A 2,777,046 $6.80 $18,893,000 M036B 2,573,372 $17.95 $46,179,852 M040B 2,051,667 $6.01 $12,321,000 M041B 1,877,478 $7.00 $13,142,346 M042B 1,863,335 $3.32 $6,191,000 M043A 1,767,391 $9.26 $16,374,000 M046B 1,124,174 $4.36 $4,901,343 M048B 1,096,396 $15.32 $16,801,654 ------------------------------------------- 144,938,590 $14.56 $2,110,079,168 AT&T Wireless PCS Inc. ====================== MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M003A 12,069,700 $30.88 $372,750,000 M005A 10,001,009 $8.12 $81,177,000 M006A 9,752,317 $6.83 $66,616,000 M008A 9,452,712 $12.87 $121,660,000 M009A 8,927,748 $9.07 $80,951,000 M010B 7,777,875 $27.23 $211,771,000 M011A 6,942,084 $28.58 $198,411,000 M016B 4,945,749 $17.36 $85,881,000 M018A 4,716,665 $8.89 $41,932,000 M019A 4,663,926 $25.48 $118,836,000 M023A 3,846,210 $8.75 $33,652,000 M025A 3,623,846 $15.70 $56,899,000 M026A 3,556,648 $13.85 $49,262,000 M027A 3,510,140 $22.32 $78,347,000 M035B 2,777,046 $7.15 $19,864,000 M038A 2,145,561 $10.39 $22,290,000 M039B 2,113,890 $4.08 $8,634,000 M043B 1,767,391 $8.95 $15,810,000 M044A 1,721,911 $6.18 $10,635,000 M045A 1,659,273 $2.80 $4,647,000 M046A 1,124,174 $3.91 $4,393,000 ------------------------------------------- 107,095,875 $15.73 $1,684,418,000 PCS PRIMECO, L.P. ================= MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M003B 12,069,700 $31.90 $385,050,583 M007A 9,694,157 $9.03 $87,500,578 M013B 5,417,788 $18.33 $99,327,723 M014B 5,190,849 $15.93 $82,680,425 M015B 5,136,581 $24.53 $126,020,126 M017B 4,925,269 $18.17 $89,475,484 M020B 4,541,432 $18.94 $86,000,001 M023B 3,846,210 $8.59 $33,045,045 M033B 2,986,524 $17.39 $51,950,059 M037B 2,274,933 $19.56 $44,500,544 M047B 1,108,229 $19.56 $21,675,432 ------------------------------------------- 57,191,672 $19.36 $1,107,226,000 Pacific Telesis Mobile Service ============================== MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M002B 19,145,232 $25.78 $493,500,000 M004B 11,891,177 $17.00 $202,150,000 ------------------------------------------- 31,036,409 $22.41 $695,650,000 American Portable Telecommunications ==================================== MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M012B 5,986,039 $6.11 $36,600,012 M013A 5,417,788 $16.57 $89,786,837 M014A 5,190,849 $16.16 $83,888,837 M021B 4,102,766 $7.72 $31,665,837 M034B 2,913,304 $8.10 $23,611,837 M038B 2,145,561 $10.34 $22,176,837 M049A 550,043 $1.82 $1,000,000 M050B 176,000 $0.81 $141,837 M016A 4,945,749 $17.59 $87,000,000 M031B 3,017,475 $23.56 $71,100,000 ------------------------------------------- 34,445,574 $12.98 $446,972,034 GTE Macro Communications Corp. ============================== MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M011B 6,942,084 $26.60 $184,660,483 M018B 4,716,665 $9.06 $42,733,483 M022B 3,880,637 $16.62 $64,502,483 M024A 3,827,175 $27.79 $106,355,002 ------------------------------------------- 19,366,561 $20.56 $398,251,451 Western PCS Corporation ======================= MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M030A 3,059,948 $11.16 $34,155,030 M032A 3,006,139 $7.35 $22,100,031 M036A 2,573,372 $17.82 $45,847,030 M039A 2,113,890 $4.08 $8,634,030 M041A 1,877,478 $5.92 $11,111,111 M047A 1,108,229 $20.18 $22,361,030 ------------------------------------------- 13,739,056 $10.50 $144,208,262 Powertel PCS Partners, L.P. =========================== MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M028A 3,465,226 $12.46 $43,169,000 M029B 3,244,076 $10.87 $35,278,000 M037A 2,274,933 $20.22 $46,000,000 ------------------------------------------- 8,984,235 $13.85 $124,447,000 PhillieCo, L.P. =============== MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M009B 8,927,748 $9.52 $84,995,012 ------------------------------------------- 8,927,748 $9.52 $84,995,012 BellSouth Personal Communications ================================= MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M006B 9,752,317 $7.27 $70,907,001 M044B 1,721,911 $6.47 $11,149,000 ------------------------------------------- 11,474,228 $7.15 $82,056,001 Southwestern Bell Mobile Systems ================================ MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M028B 3,465,226 $12.46 $43,168,314 M040A 2,051,667 $6.21 $12,732,501 M048A 1,096,396 $16.02 $17,562,369 ------------------------------------------- 6,613,289 $11.11 $73,463,184 Centennial Cellular Corp. ========================= MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M025B 3,623,846 $15.09 $54,672,000 ------------------------------------------- 3,623,846 $15.09 $54,672,000 Poka Lambro Telephone Cooperative ================================= MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M042A 1,863,335 $3.05 $5,688,000 M050A 176,000 $0.61 $107,000 ------------------------------------------- 2,039,335 $2.84 $5,795,000 Cox Cable Communications, Inc. ============================== MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M045B 1,659,273 $3.06 $5,078,000 ------------------------------------------- 1,659,273 $3.06 $5,078,000 GCI Communication Corp. ======================= MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M049B 550,043 $3.00 $1,650,129 ------------------------------------------- 550,043 $3.00 $1,650,129 Communications International ============================ MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M051B 47,000 $4.85 $228,001 ------------------------------------------- 47,000 4.85 $228,001 South Seas Satellite Communications =================================== MTA# Population $/pop. Bid Amount ----- ----------- ------ ------------ M051A 47,000 $4.57 $214,555 ------------------------------------------- 47,000 $4.57 $214,555 - RJK - --------------------------------------------------------------- The foregoing tables were prepared by: =============================================================== Bob Keller (KY3R) Email: rjk@telcomlaw.com Law Office of Robert J. Keller, P.C. Telephone: 301.229.5208 Federal Telecommunications Law Facsimile: 301.229.6875 4200 Wisconsin Ave NW CompuServe: 76100,3333 Suite 106-261 Washington DC 20016-2143 ===============================================================