Bush Administration raises expectations for wireless sales
The Bush Administration is expecting a major windfall from the sale of wireless communications licenses. The forecast is for $25 billion to be realized between 2007 and 2009, which is $7.8 billion higher than was predicted last year. The breakdown will see $9.95 billion coming in auctions in 2007, $12.24 in 2008 and the rest in 2009, if predictions in the 2007 budget that was released on Monday hold true. Some of the sales in 2008 will be of wireless airwaves given up by television broadcasters as they move to digital programming and change frequencies. $7.4 billion from those sales has been specifically targeted to help reduce the federal deficit and another $1.5 billion is to be used to help consumers buy converter boxes so that their analog televisions don’t become useless.
This revenue is on top of the sale of 90 megahertz of wireless airwaves that will go on auction on June 29 and could realize as much as $15 billion. T-Mobile and Verizon Wireless are both expected to be players in that sale.
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