A weeks-long sell-off of the government’s airwaves has brought in a record $44.9 billion, regulators announced on Thursday.
The revenue shattered all but the most optimistic watchers’ expectations and points to sunny skies for other efforts to sell off licenses to the nation’s spectrum.
{mosads}“The record-breaking auction, which was a product of true bipartisanship, highlights the great demand for more spectrum to keep pace with the increasing consumer reliance on smartphones, tablets and devices,” said Rep. Doris Matsui (D-Calif.), a co-chair of the Congressional Spectrum Caucus.
Wireless companies such as AT&T and Verizon have been eager to compete for airwaves referred to as AWS-3, which were previously controlled by various arms of the federal government.
Gary Shapiro, the head of the Consumer Electronics Association, said in a statement that his trade group was “thrilled” at the result of the auction “but not surprised.”
“Our spectrum demand for mobile broadband is large and growing, and investment will rise to match that demand,” he added.
Wireless companies say they need more and more access to the nation’s airwaves in order to keep up with consumers’ demands for fast Internet speeds on their phones, tablets and other mobile devices.
The first $7 billion taken in from the Federal Communications Commission’s auction will go to build a nationwide communications network for cops, fire fighters and other first responders. The rest will help to pay down the federal deficit.
“I don’t think anyone imagined we’d raise this much money,” Sen. Bill Nelson (Fla.), the top Democrat on the Senate Commerce Committee, said in a statement.
The FCC’s auction began in November. Winners’ identities will remain secret until the agency publishes a closing notice with additional details.
A second FCC auction, which is expected to be much more difficult to carry out, is scheduled for next year. In that auction, the agency will buy up airwave licensed from TV broadcast companies, repackage them and resell them to wireless companies.