FCC sets bidding rules for December's auction of C-band spectrum

The FCC established final application and bidding procedures for the auction of 280 megahertz of mid-band spectrum for 5G and other advanced wireless services.

December’s C-band auction will offer 5,684 new flexible-use overlay licenses based on Partial Economic Areas (PEAs) for spectrum in the 3.7–3.98 GHz band. This spectrum holds the potential to be prime spectrum for 5G services, and the procedures adopted today will ensure the assignment to auction winners of contiguous spectrum blocks allowing wide channel bandwidths that support 5G deployment.

In February, the FCC adopted rules for the C-band (3.7-4.2 GHz), which allocated the lower 280 megahertz (3.7-3.98 GHz band) for flexible terrestrial wireless services (with a 20-megahertz guard band (3.98-4.0 GHz)) and required existing satellite operators to repack their operations from the band’s entire 500 megahertz into the upper 200 megahertz (4.0-4.2 GHz). Bidding in the auction, which is designated as Auction 107, will begin on December 8, 2020.

FCC approves C-Band spectrum rules

The Federal Communications Commission voted to approve new rules to accelerate the auction and transfer of a wide swath of 3.5 GHz spectrum from the satellite industry for new uses, including 5G.

The 280 megahertz of mid-band spectrum will be made available via a public auction.

Within the 3.7-4.2 GHz band, the FCC has is allocating the 3.7-4.0 GHz portion of the band for mobile use and 280 megahertz (3.7-3.98 GHz band) will be auctioned by the FCC for wireless services in the contiguous United States. Another 20 megahertz (3.98-4.0 GHz) will serve as a guard band while existing satellite operations will be repacked into the upper 200 megahertz of the band (4.0-4.2 GHz).

Satellite operators will be able to receive accelerated relocation payments of $9.7 billion if they meet accelerated clearing milestones.

In a statement, FCC Chairman Ajit Pai writes: “With respect to this principle of revenue for the federal government, it’s important to make a couple of points about accelerated relocation payments. First, they will be made by wireless carriers, not the FCC and not the American taxpayer. And second, to the extent they impact the proceeds of the auction at all, they are likely to increase those proceeds. That’s because without a strong incentive for satellite operators to cooperate, it will take years longer to clear this spectrum, dramatically reducing the value of this spectrum opportunity to wireless bidders. It’s like repainting your house before you sell it; yes, there are costs to doing that, but the costs are more than offset by the higher sales price. And our conservative approach here means the costs of accelerated relocation are easily outweighed by the benefits to the Treasury (not to mention the public at large)…”