Sprint To Sit Out In Coming Auction of Wireless Airwaves

Sprint Corp, the American telecommunication holding company unveiled its plans not to participate in a coming auction of wireless airwaves. As per the company, the decision will help it save billions of dollars but could deprive its network of upgrades in the future.

The Federal Communications Commission has scheduled the auction for March 2016. The US government is planning to buy airwaves from TV broadcasters that it will then resell to wireless carriers.

Sprint on Sunday said that its airwaves at present are sufficient enough to provide its current and future customers great network coverage. The US wireless carrier said it will commence another major network which it says will improve the data speeds.

As per experts, the airwaves to be auctioned are considered as premium "beach-front property" because they are situated at lower frequencies. Low-frequency airwaves can travel farther and can penetrate buildings better than airwaves at higher frequencies.

Sprint’s recent decision not to participate in the auction removes a major player from an auction that is the centerpiece of FCC Chairman Tom Wheeler's tenure. T-Mobile US Inc., Verizon Communications Inc. and AT&T Inc. are unlikely to drop out of the bidding.

It is said the auction will be a success only if the carriers are willing to pay enough money to encourage TV broadcasters to part with their airwaves, or spectrum.

An FCC official said on Sunday that the agency is not at all surprised hearing Sprint’s decision, and pointed that the last two major auctions were a success even though Sprint wasn't involved.

Sprint said on Saturday that its airwaves at present are "sufficient to provide its current and future customers great network coverage."