Sprint Will Not Take Part In U.S. Auction Of Airwaves Next Year

Sprint Will Not Take Part In U.S. Auction Of Airwaves Next Year

Sprint Corp. has announced that it will not be taking part in the U.S. Federal Communications commission airwaves auction and that is scheduled to take place early next year. The company has said that it decided to back off from the 2016 airwaves auction as the company has enough airwaves to build its own network and also can meet the future needs with its existing airwaves.

The United States government is gearing up for auctioning off 600 MHz of airwaves that is powerful enough to penetrate through buildings and can also travel long distances without any fuss. The airwaves also offer wireless carriers that offer faster speeds for customers who love to browse the internet and to consume data.

The company has enough airwaves at its disposal to carry out its current network upgradation. It has enough airwaves to take care of its customers’ needs in the near future. By deciding to not take part in the upcoming airwaves auction, Sprint will become the first carrier to sit out of the auction.

The CEO of Sprint, Marcelo Claure, said that the company is focusing on improving its network and its market position as its immediate goals. It wants to remain a very powerful force in encouraging competition in its field. Sprint is the number 4 U.S wireless carriers measured in terms of the number of subscribers it has.

The company has not been able to report profits in the recent past and this could be one of the reasons for the company to back out of the forthcoming airwaves auction. The investors have raised their concerns about the financial health of Sprint Corp.

Sprint is fighting a strong battle with other wireless carriers like T- Mobile US Inc, Verizon Communications Inc and AT&T Inc. All these companies are fighting hard in the market to win each other’s customer by offering huge discounts and promotions.

The airwaves that are going to be auctioned in the early part of 2016 are premium airwaves as they are located at lower frequencies. The airwaves will help wireless carriers to easily meet the needs of the modern day consumer who likes to watch streaming videos and browse the web on their Smart phones.

The majority of the airwaves at Sprint Corp’s disposal are situated at higher frequencies. This means that if Sprint is not going to bid for these airwaves, it will have to install more cell towers to offer better coverage to its users.

References:

www.reuters.com

www.wsj.com

www.multichannel.com

September 28th, 2015 by