AT&T Wireless PCS Inc., SprintCom Inc. and Magnacom Wireless LLC were top bidders for licenses for the Oahu market, as well as Maui, Kauai and the Big Island.
But the three are paying far less than what previous licenses fetched, in part because the slice of airwaves they can tap is narrower and because investors are wary of how competitive the industry has become.
If the three enter Honolulu's already crowded wireless field, they will push the number of major players here to eight - and bring even more pressure for lower rates or enhanced services. Only two years ago the Oahu market was shared by just two companies.
The Federal Communications Commission ended the weeks-long auction today after the bidding for dozens of so-called personal communications services licenses around the country topped $2.5 billion. Three licenses were sold for each market.
The money raised was down about 75 percent from a similar FCC auction last May.
In this latest round, SprintCom, an arm of long-distance giant Sprint Corp., had the highest bid for a Honolulu license at $6.4 million. AT&T Wireless, part of the mammoth AT&T network, got its Oahu license for $3.5 million, while Magnacom, owned by GST Telecommunications Inc. President John Warta, is paying nearly $4.8 million for its entry.
In May, DCR Communications Inc. bid nearly $54 million for an Oahu license. At an earlier auction, Western Wireless Corp. and PrimeCo Personal Communications paid more than $20 million each.
AT&T Wireless spokesman Todd Wolfenbarger said the company hasn't determined yet when it will enter the Hawaii market.
But it will do so in combination with the services AT&T already offers here, he said.
Eric Tom, head of Sprint in Hawaii, said the added competition will make wireless services more accessible to the mass market. Only a quarter of Oahu's population uses portable phones, the industry estimates.
"What I think this will bring is a much more easily buyable and usable product," Tom said.
Oahu consumers so far have benefited from the increased competition. Carriers have lowered some rates, dropped phone prices or offered other incentives to lure customers.