Senate Commerce Approves C-Band Auction Bill

In a straight party-line vote, the Republican-controlled Senate Commerce Committee has favorably reported out an amended bill that would require the Federal Communications Commission to auction, by the end of 2020, at least 280 MHz of C-Band spectrum for 5G, with at least half of the gross proceeds, and potentially more, going to the US Treasury and 10% to rural broadband buildouts. Democrats argued that allowing even 50% of the proceeds to go to the satellite operators who would have to give up the spectrum for terrestrial mobile broadband was a payoff to foreign companies (Intelsat and SES (Luxembourg), Telesat (Canada), and Eutelsat (France)) at the expense of using the proceeds to build out rural broadband and aid first responders. Republicans answered that the FCC needs to incentivize satellite operators beyond paying moving costs in order to get them to move off the spectrum quickly and not to tie up the auction in court challenges if they were not compensated for the spectrum.

Next stop for the bill is a Senate floor vote, then a vote in the Democrat-controlled House, or reconciliation with their take on the issue.