Cable Giants to Sit Out Spectrum War

In a boost for Google, cable giants Time Warner Cable and Comcast said today they will not bid on the F.C.C.'s upcoming 700Mhz wireless auction, as the window for bids came to a close.

Speaking this morning at the UBS Global Media Week and Communications Conference in New York, Time Warner Cable C.E.O. Glenn Britt said, "We're not going to be in this particular auction," according to the blog IPDemocracy.

Britt explained that he does not foresee much demand for so-called "quadruple play" service, which would include video, data, land line, and wireless features.

Hours later, Comcast issued a statement saying that it, too, would not bid on the spectrum, which is becoming available as television stations transition to digital broadcasting.

"Comcast Corporation has decided not to bid in the 700 MHz wireless auction," said Comcast Senior Vice President D'Arcy Rudnay. "The 20 MHz of spectrum acquired in the wireless auction last year with our cable partners in SpectrumCo provides us with significant long-term flexibility and many strategic options."

SpectrumCo, a joint venture between Comcast, Time Warner Cable, Cox Communications, Advance/Newhouse, and Sprint Nextel Communications, won licenses for $2.37 billion in the F.C.C.'s 2006 spectrum auction. Comcast contributed $1.29 billion, while Time Warner Cable bought in for $632.2 million and Cox for $248.3 million.

The two cable giants' decision not to bid on the upcoming 700Mhz spectrum removes two deep-pocketed rivals from the playing field, just days after Google confirmed that it would bid on the spectrum. Verizon, AT&T and even Apple have all expressed interest in bidding on the auction.

As IPDemocracy's Cynthia Brumfield explains, "What this means is that cable operators probably won't pursue mobile wireless services in competition with their chief rivals, the incumbent telcos AT&T and Verizon."

Now that we know who is out and who is in, let the bidding begin. We'll see who wants it more.

by Sam Gustin

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