NorthAmericaEquityResearch14March2019TelecomServices&TowersCurrentandUpcomingSpectrumAuctionOverviewTelecomServices/Cable&SatellitePhilipCusick,CFAAC(1-212)622-1444philip.cusick@jpmorgan.comBloombergJPMACUSICKSebastianoCPetti(1-212)622-8529sebastiano.c.petti@jpmorgan.comRichardChoe(1-212)622-6708richard.choe@jpmorgan.comReedKern(1-212)622-5623c.reed.kern@jpmorgan.comJ.P.MorganSecuritiesLLCSeepage27foranalystcertificationandimportantdisclosures.J.P.Morgandoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.www.jpmorganmarkets.comWiththefirstofseveralmmWaveauctionscomplete,andanothertostarttoday,inthisreportwereviewtheseveralspectrumauctionswithvisibilitythrough2020.Wealsoestimatelikelyspendoneachoftheseauctionsaswellascarriers'likelydemand.TheFCC'sAuction102(24GHz)issettobegintodayfor700MHzoffallowspectrumwhichwebelievewillgeneratesizabledemand.ChairmanPairecentlyreiteratedhisgoaltoauctionanadditional2.4GHzofmmWavespectrumin2H19inthe37,39,and47GHzbands.Inaddition,weexpectclarityontheC-Band(3.7-4.2GHz)NPRMattheFCCwithourbasecaseremaininganorderaroundmid-yearwithapotentialmarket-basedsalesometimeinlate2019/early2020.Webelievethe3.5GHzCBRSspectrumauctionfor70MHznationwidewillslipinto2020withthecurrentFCCadministrationprioritizinghigherthenumerousauctionsabove.TheFCCcontinuestoexploremakingadditionalspectrumbandsavailableforterrestrialwirelessusesuchasthe6GHzC-Banduplink,the2.5GHzband,andunlicensed3.45-3.55GHz.Spectrumauctionscouldtotal$18-30bin2019-20.OverthenextseveralyearsanabundanceofspectrumisexpectedtocometomarketacrosstheUSwhichbeganwiththerecentlycompleted28GHzauctionwheretheFCCauctionedtheremaininglicensesinthatband(~24%)for$703m.The24GHzauctionissettobegintodayfor700MHzoffallowspectrumwhichweestimatewillclearfor~$4.4bintotalproceeds(~$0.02/MHz-pop)....
