Auctions

With little movement in the top markets and increases of only tens of millions of dollars per round in the rest of the country, the Federal Communications Commission is looking to get bidders in the 3.45-GHz midband spectrum auction off the sidelines and move toward the finish line. By round 85, the auction had raised $21,426,504,290 in gross bids. That is about 50 percent higher than the reserve price the FCC set of $14.775 billion to make sure the auction covers the price of relocating federal users of the 100 MHz of the band the Department of Defense agreed to share.

The National Spectrum Consortium, made up of hundreds of companies with a vested interest in freeing up more wireless spectrum, has launched an effort to work with the government to do just that. The consortium has launched the “Partnering to Advance Trusted and Holistic Spectrum Solutions (PATHSS) Task Group,” whose goal is to collaborate with the Department of Defense to find more midband to share.

The 3.45 GHz auction, which started October 5, completed 23 rounds on October 14, with bids tallying more than $4 billion. Demand started out high at the beginning of the month, but Auction 110 observers saw a large drop in demand on October 8. Actions over the past week suggest the auction is at risk of closing. If demand reaches supply before the minimum price of $14.8 billion is reached, the auction will fail, warn analysts at New Street Research. If things go south in a hurry, the outcome could be known by October 20.

Despite the pandemic, the Federal Communications Commission advanced major spectrum policy and auctions in 2020. Yet despite continued successes of commercial spectrum auctions in which market actors pay for the right to use the public’s resources, policymakers persist in giving away valuable resources to Big Tech. 5G licensed mid-band spectrum is projected to deliver $191.8 billion to the US economy over 7 years. Wi-Fi revenues over unlicensed spectrum over 6 years are projected to bring $153.76 billion. When adjusted on an annual per MHz basis, 5G spectrum is $0.59 and Wi-Fi, $0.13.

The Federal Communications Commission kicked off a mid-band spectrum auction to support next-generation wireless services – including 5G – in the 3.45 GHz band. Auction 110 will make available 100 megahertz of contiguous mid-band spectrum for commercial use in 2021. “We are moving with record speed and collaboration to free up more mid-band spectrum for 5G,” said FCC Acting Chairwoman Jessica Rosenworcel. “These airwaves are a critical part of unlocking the 5G promise everywhere in the country." Bidding in the first phase of the auction, the clock phase, kicked off at 10 am EST.

The National Telecommunication and Information Administration (NTIA)’s 2021 Spectrum Policy Symposium brought together key policymakers and industry experts to explore how a “whole of government” approach to spectrum policy can address US priorities for 21st-century global leadership. Each keynote speaker highlighted the importance of spectrum to the economy, US technological leadership, innovation, and federal government missions.

AT&T gets a chance to close a 5G airwaves gap with its rivals as bidding begins in a US auction of frequencies for ultrafast wireless service that’s expected to attract $25 billion in bids. The third-largest US wireless carrier is predicted to be the top bidder in the spectrum auction run by the Federal Communications Commission. Mobile leaders Verizon and T-Mobile are also ready to take part in the sale that starts October 5, as is Dish Network. The airwaves being sold are in the 3.45-3.55 GHz range, and are known as midband frequencies.

Reps Doris Matsui (D-CA) and Mike Doyle (D-PA) introduced the Spectrum Innovation Act (H.R.5378) to free up new airwaves for wireless broadband use by the public. The Spectrum Innovation Act would ensure faster speeds and more responsive networks for consumers. In addition to up to 200 megahertz of spectrum auctioned for mobile broadband, this bill would help usher in new, innovative wireless uses through opportunistic and other flexible spectrum uses.

Small wireless carriers expressed dissatisfaction and concern about several aspects of their business at the Competitive Carriers Association (CCA) Annual Convention. They’re concerned that digital-divide money will all go toward fiber, that Universal Service Funds (USF) are drying up, that their spectrum needs are being ignored, and that they’ve missed the boat on private wireless.

Although he’d be all for it, former Federal Communications Commission Chairman Tom Wheeler is doubtful that a new spectrum screen would be implemented anytime soon, including before upcoming 5G mid-band spectrum auctions. AT&T filed a petition in September 2021 asking the FCC to establish a mid-band spectrum screen, pointing to T-Mobile’s vast 2.5 GHz mid-band spectrum holdings thanks in large part to its merger with Sprint.