The FCC’s final scheduled 5G auction, of 2.5 GHz spectrum, opened Friday at $103.5 million after one round of bidding. Two more rounds are scheduled for Monday. Industry analysts tell us T-Mobile looks likely to dominate, filling in gaps in its 2.5 GHz holdings, with some smaller carriers likely to jump in if they see the opportunity for a bargain. Verizon, AT&T and Dish Network qualified to bid but appear unlikely to make much of a play, analysts said. T-Mobile already has 159 MHz of 2.5 GHz spectrum nationwide.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
The House passed the Spectrum Innovation Act (HR-7624) and three other telecom and tech bills Wednesday night, drawing praise from lawmakers and some stakeholders. The chamber voted 336-90 for an en bloc package that included HR-7624 and two of the other bills, the Reporting Attacks from Nations Selected for Oversight and Monitoring Web Attacks and Ransomware from Enemies Act (HR-4551) and Safe Connections Act (HR-7132). Lawmakers voted 416-12 for the Advancing Telehealth Beyond COVID–19 Act (HR-4040). HR-7132 and HR-7624 "provide our nation’s mobile networks with the spectrum resources necessary to provide next-generation wireless technologies, promote wireless innovation, fund important public safety priorities like Next Generation 9-1-1, and ensure that phone contracts cannot be used to perpetuate abuse when survivors and abusers share a phone contract," said House Commerce Committee Chairman Frank Pallone, D-N.J., and Communications Subcommittee Chairman Mike Doyle, D-Pa. "The bipartisan bills passed today will enhance spectrum management, strengthen public safety communications tools" and "secure our networks from countries like China," said House Commerce ranking member Cathy McMorris Rodgers, R-Wash., and Communications ranking member Bob Latta, R-Ohio. Matt Mandel, Wireless Infrastructure Association senior vice president-government and public affairs, praised lawmakers for "prioritizing America’s leadership in wireless network innovation by voting to make more spectrum available for commercial and shared use" via HR-7624. The measure would renew the FCC's auction authority through March 31, 2024, and authorize sales of 3.1-3.45 GHz spectrum licenses. "Making additional Federal spectrum resources available for commercial use will provide significant benefits for the industry, the economy, and most importantly, consumers," said Competitive Carriers Association President Steve Berry: HR-7132 "will help survivors of domestic violence remain connected."
House Communications Subcommittee Chairman Mike Doyle, D-Pa., and other House Commerce Committee members urged the chamber Tuesday to pass the Spectrum Innovation Act legislative package (HR-7624) by a lopsided bipartisan margin ahead of floor votes as soon as that evening on several telecom and tech measures. The House planned floor votes on HR-7624 and two other telecom and tech bills on the docket: the Reporting Attacks from Nations Selected for Oversight and Monitoring Web Attacks and Ransomware from Enemies Act (HR-4551) and Safe Connections Act (HR-7132). The chamber was also expected to consider the Institute for Telecommunication Sciences Codification Act (HR-4990). The Rules Committee, meanwhile, began considering Tuesday afternoon a set of proposed amendments to the Advancing Telehealth Beyond COVID-19 Act (HR-4040) amid Republicans’ concerns that the measure didn’t first get House Commerce clearance.
Eighteen wireless carriers and stakeholders are urging Congress to fully fund the Secure and Trusted Communications Networks Reimbursement Program amid ongoing concerns about the FCC’s final estimate that lawmakers will need to appropriate an additional $3.08 billion to pay the costs of replacing the unsecure equipment (see 2207150067). Industry experts told us the outlook on whether Congress will act on the Spectrum Innovation Act (HR-7624) or other proposals to provide additional funding is unclear, but the risk for industry and negative implications for closing the digital divide are real.
Congress’ clash on spectrum legislation is expected to escalate just before lawmakers leave for the long August recess with a continued lack of bicameral consensus. House Commerce Committee leaders are eyeing potential floor consideration the week of July 25 of the Spectrum Innovation Act legislative package (HR-7624) the panel advanced Wednesday (see 2207130066). Senate Commerce Committee leaders haven’t signed on in support of HR-7624’s approach and are likely to hold a hearing the week of Aug. 1 on renewing the FCC’s spectrum auction authority and other matters the measure addresses. HR-7624 authorizes an FCC auction of up to 200 MHz on the 3.1-3.45 GHz band.
Broadcasters, MVPDs, ISPs and other entities argued over the state of competition in the broadband and video marketplaces and how to address it, in comments posted by Friday’s deadline in docket 22-203 for the agency’s biannual State of Competition in the Communications Marketplace report to Congress, due in Q4. Regulations premised on lack of competition “should be repealed,” said NCTA. The FCC “must consider the real-world consequences of imposing, in a highly competitive marketplace, a burdensome and outdated regulatory regime,” said NAB.
Senate Commerce Committee Chair Maria Cantwell, D-Wash., is continuing to oppose advancing Extending America’s Spectrum Auction Leadership Act (HR-7783) over the measure’s proposed 18-month extension of the FCC’s sales authority, complicating efforts to pass a spectrum legislative package this year. Senate Commerce ranking member Roger Wicker, R-Miss., meanwhile, is backing language in the Senate Armed Services Committee’s FY 2023 National Defense Authorization Act version that proposes “an assessment of the implications of” provisions in the NTIA Organization Act “on DOD's access to the electromagnetic spectrum and resources" (see 2206160077).
The FCC gave Dish Network and designated entities SNR Wireless and Northstar Wireless an opportunity to cure control issues in the AWS-3 auction and fair notice of the legal standards it would apply in looking at their claims to be very small companies, said a U.S. Court of Appeals for the D.C. Circuit panel Tuesday, again rejecting challenges by the petitioners of the auction outcome. Oral argument was in January (see 2201140032). The D.C. Circuit in 2017 upheld the FCC's withholding of auction bidding credits to the DEs based on too-close ties to Dish (see 1708290012).
Industry experts said some questions remain after last week’s announcement that “key stakeholders in the aviation and wireless industries” agreed to a revised rollout of C-band spectrum around some airports by Verizon and AT&T (see 2206170070). Airlines for America (A4A), which represents major airlines, already questioned the pact in a letter to the FAA.
The FAA said Friday “key stakeholders in the aviation and wireless industries” have identified steps that will protect commercial air travel while allowing Verizon and AT&T to turn up the power on 5G C-band radios around protected airports on a case-by-case basis. The carriers agreed to keep mitigation measures in place around some airports for another year or longer. Airlines for America (A4A), which represents major airlines, raised concerns in a Friday letter to the FAA.