Why American telecoms firms are splurging on 5G spectrum

IT MAY BEGGG the most hyped technology since blockchain. But even sophisticated telecoms giants are now placing huge bets on 5. In early December American regulators started the process of auctioning off radio-frequency bands needed to roll out superfast fifth-generation mobile networks. Industry experts had expected bids to come in at $25bn-30bn between them, less than the $45bn fetched in the last big 4 spectrum sale in 2015—but a tidy sum nonetheless.In fact, when the first part of the auction was concluded on December 23rd, the bids had reached a staggering $70bn. The winners will be on the hook for “clearing costs” of another $13bn-15bn, in part to compensate satellite firms for giving up some of their spectrum that is particularly well-suited for 5. The auction will resume on January 4th. By the time it ends, the proceeds may exceed $90bn.