Will the upcoming 2.5 GHz auction raise big bucks?

The upcoming Auction 108 of 2.5 GHz spectrum is likely not going to raise a ton of money. But at least it will clean up the spectrum band, closing the many gaps where the spectrum is lying fallow and not being used at all. The auction will begin on July 29, 2022. While some auctions, such as the C-band auction held in 2021, aim to make billions of dollars to fill federal coffers, not all auctions are strictly focused on profit. Sasha Javid, COO with BitPath and a former chief data officer with the FCC, said the FCC has multiple mandates. Yes, it’s nice to hold auctions that raise a lot of money, but the FCC also wants America to win the race to 5G, especially against China. And it wants the nation’s spectrum assets to provide the most benefit for the public. Michael Calabrese, director of the Wireless Future Program with the non-profit think tank New America, said the last couple of mid-band auctions had reserve thresholds because the FCC needed to raise a certain amount of money to pay previous users of the spectrum to move. That isn’t the case with this auction, where the spectrum is not currently being used. Given that there are about 8,000 licenses in Auction 108, the process could go on for several months — even into the fall, said Javid.