Not every FCC spectrum auction comes with a mystery round, but those closely watching the 3.45 GHz auction last year noticed that one bidder appeared to drop out in Round 10.
Due to auction rules and its requisite secrecy, nobody knew for sure. It could have been Verizon. Some even speculated it was Dish Network.
However, it became clear rather quickly that it wasn’t Dish. That’s because Dish announced a more than $5 billion financing deal with funds dedicated, in part, specifically for new spectrum.
RELATED: 3.45 GHz auction surpasses $1.5B, loses one large bidder
In the end, the final results, released last week, indicate the one that dropped out was none other than Cherry Wireless, according to Sasha Javid, COO of BitPath who closely tracked the auction here.
Verizon, it turns out, didn’t win any licenses in the auction that saw rival AT&T come out on top with 1,624 licenses. Dish was No. 2, winning 1,232 licenses. T-Mobile acquired 199 licenses.
Cherry Wireless is backed by private equity and Edward Moise Jr. In the C-band auction, these investors bid under the name Canopy Spectrum LLC, Javid noted.
Cherry Wireless acquired 319 licenses in the 3.45 GHz auction, and it's worth noting that the auction design is how Cherry Wireless was able to still pick up licenses even after failing to place any bids in Round 10.
Javid said this week it still wasn’t clear whether Cherry’s actions in Round 10 were intentional or not. “People are split,” he said.
“I believe that the most likely scenario is that Cherry Wireless attempted to completely drop out in Round 10 and then had to change course after failing to do so in many markets as a result of the auction format," he said. "What is unusual is that it happened so early in the auction when prices were still very low. Therefore, another plausible scenario is that Cherry Wireless may have unintentionally failed to bid in Round 10 and was only saved by the auction format. If the latter scenario true, that would be unfortunate.”
Alas, the answer remains elusive, as the quiet period for Auction 110 remains in effect until 6 p.m. Eastern time on January 31, so auction participants are forbidden from talking about their intentions. Fierce reached out to Moise, who declined to comment for that very reason.
Another private equity player in the 3.45 GHz auction was Three Forty-Five Spectrum LLC, backed by Columbia Capital. It was among the top five biggest spenders, picking up 3.45 GHz spectrum in the largest markets for more than $1.3 billion. It ended up with 18 licenses, Javid noted. Columbia Capital is also a familiar name from prior auctions and secondary market spectrum deals.