Auctions

The Federal Communications Commission on July 23 is beginning its first auction of licenses for prime, mid-band spectrum suitable for 5G. The auction will offer county-based Priority Access Licenses (PALs) in the 3550-3650 MHz band, which will encourage the rapid deployment of next-generation wireless networks in the band. This is a critical step in freeing up spectrum for the commercial marketplace—a core part of the FCC’s 5G FAST Plan. 

A lot of hopes are riding on the auction of spectrum in the Citizens Broadband Radio Service (CBRS) band, which has a start date of July 23. The spectrum is considered mid-band – and industry stakeholders increasingly see mid-band spectrum offering the optimum mixture of bandwidth and coverage for 5G deployments. Perhaps no one has higher hopes for the auction than Verizon, which is light on mid-band spectrum holdings.

Federal Communications Commission Chairman Ajit Pai announced that the items below are tentatively on the agenda for the August Open Commission Meeting scheduled for Thursday, August 6, 2020:

C-band Auction Procedures – The FCC will consider a Public Notice that would adopt procedures for the auction of new flexible-use overlay licenses in the 3.7–3.98 GHz band (Auction 107) for 5G, the Internet of Things, and other advanced wireless services. (AU Docket No. 20-25)

The House Commerce Committee advanced seven communications bills and one House resolution to the full House of Representatives.

When it comes our August meeting’s main attraction, repurposing C-band spectrum for 5G, we feel the need — the need for speed. I circulated final draft procedures for a C-band auction to be held on Dec 8, 2020, and we will vote on them at our August meeting. They spell out the many details of the auction — competitive bidding procedures, application requirements, and deadlines governing participation in Auction 107. To spur the deployment of ultra-fast, world-leading 5G networks, we need to make C-band spectrum (among other spectrum bands) available as quickly as possible.

The Federal Communications Commission announced that the post-incentive auction transition has successfully reached the July 13, 2020 deadline established for television stations to move off their pre-auction channel assignments. This milestone signals that all of the valuable low-band airwaves sold in the ground-breaking broadcast incentive auction are now available for wireless mobile broadband services. This newly licensed 600 MHz band spectrum is already benefiting millions of US consumers, as it is being used to provide wireless service, including 5G, across the country.

To meet the booming demand for mobile broadband that was being fueled by the smartphone revolution, Congress empowered the Federal Communications Commission to conduct a first-of-its-kind, two-sided auction that would allow spectrum used for broadcast TV to be repurposed for wireless services. In April 2017, we closed the bidding in the incentive auction, which yielded $19.8 billion in revenue. Roughly $10 billion went to broadcasters as incentive payments for giving up their spectrum.

Federal Communications Commission Chairman Pai sent letters to 38 senators on June 23, 2020, in response to their letter that asked the FCC to extend the 2.5 GHz Rural Tribal Window by 180 days in light of the pandemic. Chairman Pai noted the FCC granted four emergency short-term grants of special temporary authority in the 700 MHz and 2.5 GHz bands to support the Navajo Nation, Zuni Pueblo, and Makah Tribe communications and pandemic response efforts. And Chairman Pai said the FCC has yet to make a decision on whether to extend the August 3, 2020 application window deadline.

Senate Communications Subcommittee Chairman John Thune (R-SD)  introduced the Rural Connectivity Advancement Program (RCAP) Act of 2020, legislation that would capture a portion of the proceeds from spectrum auctions conducted by the Federal Communications Commission through September 30, 2022, for the buildout of broadband networks.

Whether it be for business meetings, family video chats, virtual doctor appointments or distance learning, more Americans are relying on broadband and wireless networks to stay connected than ever before, as the nation deals with the COVID-19 crisis. As we look into the future, it is evident that investing in building these strong communication networks, in particular next-generation wireless networks or 5G, will be as crucial than ever to American success.