The ongoing FCC AWS-3 auction has been deemed more successful than initially planned - even although analysts had initially predicted that it could be expected to raise anywhere between $14 billion and $22 billion. However, more than $24 billion in provisional bids has already been raised – after just six days.

Although it seems like the activity in the auction may be slowing, some believe that it could still continue for five weeks. This has been the most successful FCC auction to date in that it has surpassed the almost $14 billion that was raised during the AWS-1 auction in 2006 and the $18.9 billion raised during the 700 MHz auction that was held a few years ago. It has since been suggested that as much as $35 billion could be raised in total during the AWS-3 auction.

The reason that the auction has been so successful is that the amount of Smart phone users has increased exponentially over the past few years, which has resulted in an increased need for spectrum as well as upgraded infrastructure, namely LTE. Recent studies have shown that the average American downloads approximately 1.8 GB of cellular data each month.

Cell carriers like Verizon Wireless and AT&T Mobility want to ensure that their clients are provided with a continual high speed internet service for Smart phones and other internet-enabled devices, and in most cases, it seems like the carriers are willing to pay almost anything to ensure that they are known for providing the most reliable and fastest network infrastructure.

According to rules enforced by Congress, the first thing that needs to be done with proceeds from the AWS-3 auction is to provide funds for the First Responder Network Authority (FirstNet), so that an interoperable LTE broadband network can be set up and used by firefighters, police and other emergency workers.

While the identity of auction bidders remains confidential until the end, there’s no doubt about the fact that Verizon and AT&T are putting up the most money at present. However, the exorbitantly high prices they seem willing to pay may arouse concern among investors – especially after both carriers’ stock fell slightly in recent trading.

If Verizon and AT&T want to continue to provide high-speed internet access, the AWS-3 auction is the only way for them to add to their spectrum portfolios – especially owing to the fact that the 600 MHz auction has been postponed and will now most likely only take place sometime during 2016.

Sprint has decided to not take part in the AWS-3 auction at this time, and based on the increasing prices that are being charged for AWS-3 licenses, many are seeing this as a wise move.