Comcast CFO Michael Cavanagh said the company is planning to file for participation in the upcoming forward spectrum auction.
Cavanagh’s comments came during Comcast’s fourth quarter earnings call on Wednesday and addressed rampant speculation about whether the cable and internet giant would participate alongside wireless companies like Verizon, T-Mobile and AT&T.
According to Cavanagh, the company’s $5 billion in buybacks planned for 2016 will not be impacted by the acquisition of spectrum.
But Cavanagh was less definitive on just how much the company might spend to acquire the prime airwaves up for grabs in the auction.
“We’re going to take a paddle on the auction, which means we’re going to evaluate, consider and may purchase, but only if we think the price is right after we do our evaluation of what’s available,” Cavanaugh said.
According to Comcast CEO Brian Roberts, Comcast will be seeking spectrum that holds “strategic value” for the company as it looks to leverage its other mobile assets.
“It’s a free auction, if you will, to get a paddle and see what the values are, and how much capacity,” Roberts said. “It’s not clear exactly what’s for sale, exactly yet, and all that has to be determined. But you have to make the decision now, and so we’re making it.”
The deadline for applications for broadcasters looking to sell their spectrum in the reverse auction passed in early January, but the FCC has not released a list of participants. Both FCC Chairman Tom Wheeler and the National Association of Broadcasters have said only that they are looking forward to “robust” participation from broadcasters.
Significant bidding participation by Comcast could help boost forward auction revenues, which some fear may fall below the $45 billion expected by the FCC. According to figures from Bloomberg, carrier bids could total just $33 billion, especially without the participation of players like Sprint and U.S. Cellular who have either outright stated or hinted that they will not participate.
Applications for auction bidders are due by Feb. 9.
Spectrum aside, Roberts said that contrary to rumor, the company doesn’t have any other big spending planned on mergers and acquisitions for wireless, Internet or European cable assets.
“I sit there and look at those scenarios and many others that have been suggested and there’s nothing we feel we have to do,” Roberts said. “Sitting here today, our plan of record in 2016 is to execute on a business plan, stay focused, and I don’t feel the need that we need to go and change the face of our company.”
