Look Who's Bidding in Auction 73

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Many Potential Players

Some unexpected auction filers deserve a second look as well. There's Vavasi NexGen, owned by Bellevue (Wash.)-based Indian Connexion, a U.S. company that is, in turn, the property of Vavasi Telegence, an Indian technology company. The parent company is launching high-speed wireless data services in countries around the world. Clearly, the U.S. could be its next target. Indian Connexion has filed a petition with the FCC asking for consent to be foreign-owned.

Then, there's Chevron USA—yes, the oil company. Chevron (CVX), which has hundreds of drilling platforms out in the Gulf, is hoping to build its own communications network allowing workers to talk to one another and to headquarters (currently, the company uses satellite phones for that). But that network may end up being quite ambitious, as the company may also be interested in owning a network for the tracking of its various trucks and containers as they move to their destinations around the country.

Microsoft co-founder Paul Allen's Vulcan Capital has an eye on the spectrum as well. The reasons for Allen's interest could be twofold: Allen, of course, is the chairman of U.S.'s third-largest cable company, Charter Communications (CHTR). And Charter, just like auction participants and cable companies Cox (COX) and Cablevision (CVC), increasingly finds it necessary to offer wireless services along with video and high-speed Internet services. Several cable companies that bid in this auction might eventually band together and offer nationwide coverage.

But Allen, known for his philanthropy, may also be interested in building out a wireless network that offers low-cost wireless connectivity for people who can't afford cell phones today. "This may be a chance to be a benefactor and to be profitable," Doherty says.

Undisclosed Motives

Another participant to watch is Guam Cellular & Paging, which provides services in Guam. Since 2006 the company has been owned by the largest Japanese carrier, NTT DoCoMo, which may have bigger plans for the U.S. wireless market than it lets on. DoCoMo may look to provide high-speed wireless data services across the U.S., and Guam may be a starting point for that effort.

Entity Pulse Mobile actually has the backing of TeleGuam, a rural carrier on the island of Guam, where Shamrock Holdings has an investment. Shamrock, headed by Roy Disney, director emeritus of Walt Disney (DIS), also holds a significant investment in Disney, which has dabbled in wireless services, albeit unsuccessfully. Disney Mobile service for kids and their parents closed its doors earlier this year. Perhaps Roy Disney is hoping to figure out how to combine Disney's stellar cartoons, shows, and film content with a mobile service, and is looking to acquire spectrum for that purpose. On the other hand, TeleGuam may simply be looking to improve its coverage. Both TeleGuam and DoCoMo, however, have to find a way around the no-foreign-ownership rule.

Then, of course, there are the potential speculators. Wireless industry veteran Charles Townsend, who sold a chunk of his 700-MHz spectrum to AT&T this summer for about $2.5 billion, is at it again. His Aloha Partners will participate in Auction 73 under the name of Bluewater Wireless. Based on Townsend's track record, he may try to buy a chunk of the spectrum to turn around and sell in a few years. But then, that's what a land grab is all about.

Kharif is a senior writer for BusinessWeek.com in Portland, Ore.