New FCC chair looks to repeat C-band mega-auctionNew FCC chair looks to repeat C-band mega-auction

The US Federal Communications Commission plans to open up more C-band spectrum for 5G, harking back to a golden age of spectrum awards that brought in tens of billions of dollars.

Mary Lennighan

February 6, 2025

3 Min Read

New FCC chairman Brendan Carr made the disclosure as part of a broader statement on the new Commission's agenda. It seems spectrum will be high on the regulator's list of priorities going forward.

Carr also talked about an upcoming AWS-3 frequency auction, indicating that it is on track to take place by mid-2026 as required by law. We knew that auction was coming; the previous Commission said as much in early January. The funds from the auction are needed in fairly short order to support the Secure and Trusted Communications Networks Reimbursement programme, better known as Rip and Replace; the scheme to aid telcos in getting Chinese equipment out of their networks.

But the proposed C-band sale is new information.

"In 2020, the FCC conducted the most successful auction in history when it released 280 megahertz of mid-band spectrum in the C-band for 5G," Carr wrote, in a blog post. "This month, we will vote on a notice of inquiry that asks whether the Commission should open up additional portions of the C-band (3.98-4.2 GHz) for more intensive use. We want to hear your views."

We don't have a lot more to go on at this stage. Doubtless there will be more information available when the vote takes place. As it stands, we don't know how much spectrum we're talking about or when it might go on the block.

What we do know is that the previous sale was a huge money-spinner for the government, which is doubtless why the FCC wants a second bite of the cherry.

The first C-band auction, which drew to a close in early 2021, brought in a staggering US$94 billion. Verizon made headlines by shelling out $52.9 billion at the auction, including incentive payments and clearing costs, so naturally there is talk of whether it will look to repeat its performance in the next C-band sale. But until we have more information it's all just speculation.

We're further down the path with AWS-3 though.

"This month, we will vote to kickstart the process for reauctioning a large number of AWS-3 spectrum licenses that have sat in inventory for years," Carr said. "This auction will be a win-win. It brings new spectrum into play for commercial use," he noted, as well as paying for Rip and Replace.

As Light Reading pointed out at the back end of last year, AT&T is tipped to be the most likely to spend big on the AWS-3 sale, given that it has less mid-band spectrum than its rivals, and CEO John Stankey has already expressed interest in the airwaves.

At that stage, we didn't know when the FCC would be able to auction AWS-3, or indeed any, spectrum. The regulator's spectrum auction authority lapsed in March 2023, leaving it unable to allocate any airwaves, much to the industry's chagrin.

However, the need to get the AWS-3 off the ground to pay for Rip and Replace finally set the wheels in motion for that authority to be restored. A fortnight ago the Spectrum Pipeline Act of 2025, which amongst other things sorts out the FCC's auction authority, was introduced to Congress.

Essentially, it's now just a matter of time before the US starts making spectrum auction headlines once more. The previous C-band sale may have been the peak of operator spectrum spending, but we could see the big guns part with a significant amount of cash again in the next year or so.

About the Author

Mary Lennighan

Mary has been following developments in the telecoms industry for more than 20 years. She is currently a freelance journalist, having stepped down as editor of Total Telecom in late 2017; her career history also includes three years at CIT Publications (now part of Telegeography) and a stint at Reuters. Mary's key area of focus is on the business of telecoms, looking at operator strategy and financial performance, as well as regulatory developments, spectrum allocation and the like. She holds a Bachelor's degree in modern languages and an MA in Italian language and literature.

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