FCC Seeks Comment on Procedures for Proposed AWS-3 Auction

The auction will be the FCC’s first for full-power licensed use since 2022. Part of the proceeds will fund the FCC’s Secure and Trusted Communications Networks Reimbursement Program.

The FY 2025 National Defense Authorization Act, which authorized the auction, allows 18 months for it to be held, but the FCC appears to be moving quickly. Comments on the notice are due April 10, replies April 25, in docket 25-117. The FCC will offer for sale licenses returned to the FCC by affiliates of Dish Network in 2023 and unsold licenses from the initial AWS-3 auction 10 years ago (see 2501230041).

FCC Chairman Brendan Carr has pledged to take an aggressive approach on spectrum.

“By this Public Notice, the Commission announces an auction of 200 licenses in the 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz bands … and seeks comment on the procedures to be used for the auction,” the notice said. It will be designated as Auction 113. The FCC mentioned the NPRM’s questions about a tribal window in a footnote.

The auction will offer 48 economic area licenses and 152 covering cellular market areas. Licensees in the 1755-1780 MHz band “must agree to accept interference from incumbent Federal users while they remain authorized to operate in the band," the notice said. The 2155-2180 MHz band “is already allocated for exclusive non-Federal, commercial use.”

Summit Ridge President Armand Musey told us “bidders will likely be seeking to fill in gaps or spectrum deficiencies in their portfolios,” and a relatively simple auction format makes sense. The proposed rules “should simplify the process and potentially accelerate it.”

“There’s a welcome sense of urgency about getting unused spectrum put to use. That can only be a good thing,” emailed MoffettNathanson’s Craig Moffett. “EchoStar might have more to gain or lose here than anyone else,” he said: “Creditors and would-be lenders will re-value the rest of EchoStar’s spectrum portfolio in part based on what the re-auctioned licenses go for. That could either make or break EchoStar’s ability to raise enough money to keep operating.”

“This highlights the urgency to get the spectrum in the hands of the companies who will actually use it," said Recon Analytics' Roger Entner.

Carr has outlined several priorities on spectrum, Arpan Sura, an aide to the chairman, said during a Technology Policy Institute webinar on Tuesday (see 2503110054). "We need to move faster,” Sura said. “We need to have definable targets, both in terms of megahertz and time frames,” he added. “We need to have more focus on results and less focus on process.” There also must be “alignment between the political leaders and the staff.”

Other webinar speakers said the spectrum needs of carriers remain unclear. David Redl, CEO of Salt Point Strategies, noted that on “every single earnings call by the large carriers, they say that they don’t need spectrum.”

Wall Street’s view is that “5G didn’t really work out that well for the companies,” said New Street’s Blair Levin: “They spent a lot of money on [capital expenditure], but there was no new revenue source.” When carriers say they need more spectrum or service will degrade, “Wall Street’s reaction is ‘and therefore what?’ Are people going to turn off their cellphones because their service is a little worse?”

Shawn Bone, Verizon's senior director-public policy, said during the webinar that his company is “pleased to see … Carr launch quickly into work on spectrum -- launch the AWS-3 item." Carriers don’t need more spectrum “tomorrow,” they need a “sightline” to understand when more will be available to meet their network needs long term, he said.