Major Wireless Carriers Weigh In on Proposed AWS-3 Rules

Verizon said it largely supports the FCC’s proposed auction design. “In particular, the Clock-1 auction structure and the proposed upfront payments and minimum opening bids are appropriate for Auction 113 and will encourage robust participation,” it said in comments posted Friday (docket 25-117).

However, the carrier sought a few tweaks. “Ensure that the rule prohibiting certain communications does not unduly limit a robust secondary market and that it applies to all nationwide providers,” Verizon said: Adopt the maximum default percentage of 20% and “decline to allow bidders to bid above their eligibility, which can promote insincere bidding and prolong the auction.”

T-Mobile called on the FCC “to ensure a timely and efficient competitive bidding process" by avoiding "design features that introduce unnecessary confusion or complexity.” It also recommended strict buildout deadlines. “Selective defaults on high bids” in the initial AWS-3 auction “kept most of this spectrum out of productive use for nearly a decade,” the carrier reminded the agency.

The FCC should allow proxy bidding, T-Mobile added: “Allowing auction participants to submit proxy instructions for how to apply their bids will simplify bidding, encourage auction participation, reduce the risk of erroneous bids, and allow for more efficient use of bidder resources.” The carrier opposed contingent bidding, which “allows auction participants to condition their bids on the outcome of other bids.” Also, it hit at switch bidding, which “allows participants to delay commitment to a license acquisition without incurring an immediate cost.” Simple, straightforward rules work best for auctions, T-Mobile said.

AT&T, which analysts see as the most spectrum-hungry big carrier, said the FCC should get started “as soon as possible.” In its comments, AT&T said, “Not only has Auction 113 been a decade in the making, but it also represents an extremely rare opportunity for the Commission to auction any spectrum.” In addition, it said it supports the procedures the FCC has proposed. “The competitive bidding rules and procedures outlined in the Public Notice are generally consistent with those of past auctions, and this blueprint has proven successful," the carrier said: “They are certainly sufficient for this auction, limited to the sale of licenses leftover from Auction 97.”

The Competitive Carriers Association urged two changes to the FCC's proposed rules. It should increase the bidding credit caps, "which the Commission has not updated in more than a decade, to account for inflation,” the association said. It noted that the past $25 million cap, adjusted for inflation, would be $33 million in 2025 dollars. The FCC should also “establish an aggregate reserve price that ensures the recoupment of defaulted bids from Auction 97.”

EchoStar, parent of Dish Network, reiterated arguments that the FCC must use the same designated entity rules in the reauction of AWS-3 that it employed in the original 2014 auction (see 2504020017). Adopt a $3.3 billion aggregate reserve price for the auction since “a lower price would fall short of raising the maximum funding earmarked by Congress for rip and replace,” EchoStar said.

Any bidding credit cap for small businesses, particularly a $25 million cap -- the minimum amount the commission must set under its current rules -- “would likely cause lower participation and revenues that result in retroactivity that violates EchoStar’s due process rights and would reduce potential proceeds that could fund the rip and replace national security initiative,” the company said.