Marty Cooper

Lowell was more polite, of course. Verizon didn't buy any spectrum in the last auction despite prices that were down by 50-60%. "We simply don’t need it," explains Chief Network Officer Nicola Palmer. Lowell McAdam told Morgan, "When you look at the spectrum and the cost of small cells versus the cost of spectrum in the old AWS auction sort of environment, it was clear to us that building the fiber infrastructure to densify via small cells was better than the alternative of a buying spectrum." CFO Matt Ellis explained to Craig Moffett, "Spectrum is one way that we can add that capacity, but it's not the only way," 

Technology allows adding relatively inexpensive capacity within existing spectrum faster than demand is growing. Verizon estimates the cost per bit is going down 40%/year; Telus estimates 55%. Verizon's capex has been flat to down but they now are offering new unlimited plans. McAdam expects capex to stay flat for the next decade, despite one of the largest 5G mmWave builds in the world.

Nicola Palmer 200 "We have sufficient spectrum holdings below 1 GHz," says Chief Network Officer Nicola Palmer. "We have strong spectrum holdings in the 700, 850, 1900 megahertz (MHz)/PCS, AWS 1 and 3 spectrum bands. So why didn’t we bid on the 600 MHz spectrum? We simply don’t need it."

Verizon has 40 MHz of fallow spectrum ready for 4G, enough to move from two bands of 20 MHz to four bands and roughly double capacity. Palmer points out 3G traffic is dwindling rapidly, allowing VZ to refarm 3G spectrum.