Cable TV groups eye joint bid in wireless auction

Leading US cable television operators including Cable and are considering a joint bid with , the third largest mobile carrier, for wireless spectrum in a high stakes auction set to attract bids from a wide swathe of media and telecoms companies.

Glenn Britt, chief executive of Time Warner Cable, said the companies, already part of a joint venture to develop wireless offerings for cable customers, would register their interest with the US Federal Communications Commission. They have ruled out separate, independent offers.

The cable companiesðÐmove signals the growing importance of mobile telephony in the mix of voice, video and data that both cable operators and their telecommunications rivals are seeking to offer customers as part of a services ðundleðÞ

It also suggests bidding in next monthð# FCC auction of 90Mhz of wireless spectrum suitable for 3G services will be fierce and attract attention not just from established wireless carriers, but also new entrants such as technology companies and satellite operators.

ðhe auction of a massive amount of spectrum in late June could alter the balance of power in the US wireless services industry ðÐnow dominated by three or four companies,ðÐsaid analysts at Lehman Brothers.

The filing on Wednesday by the cable consortium and Sprint Nextel does not commit the group to a bid in the auction on June 29, but is necessary for a chance to bid.

Other interested parties also needed to register by the end of the day.

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Mr Britt said Time Warner would ðe very disciplinedðÐabout deciding whether to enter the spectrum auction. Other members of the consortium, which was formed with Sprint in November, include Cox Communications and Advance/Newhouse Communications.

The auction covers wireless airwaves across the US that can be used for both voice and advanced data services such as broadband wireless and mobile video services. Analysts have estimated that the sale, which could last weeks, could bring in between $8bn and $15bn.

While that figure would be far less than the sums raised in Europe through the 3G auctions at the end of the 1990s, it would be one of the biggest spectrum auctions ever in the US.

Among the likely bidders are ð# T-Mobile USA, the fourth largest US wireless carrier, which needs new spectrum in order to launch 3G services.

The auction could also attract bids from companies outside the traditional communications sector, such as and . Some analysts have suggested such a move would make sense for internet companies seeking to ensure access to broadband delivery systems for their content.

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