FCC Chairwoman Jessica Rosenworcel has proposed new rules to authorize the auction of AWS-3 spectrum licenses in a bid to fully fund the removal of Chinese-made Huawei and ZTE equipment from U.S. telecommunications networks. This initiative, part of the Secure and Trusted Communications Networks Reimbursement Program, also known as “Rip and Replace,” aims to close the funding gap for eliminating insecure equipment posing national security risks.
The proposed spectrum auction would release unassigned licenses in the 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz bands, with proceeds directly funding the “Rip and Replace” program. The initiative follows Congressional action under the National Defense Authorization Act (NDAA), which authorized the FCC to borrow up to $3.08 billion from the Treasury Department, to be repaid using the proceeds from the auction. This would mark the FCC’s first spectrum auction since its general auction authority lapsed in March 2023.
The program was initially funded with $1.9 billion in 2021, but demand exceeded the available funding, necessitating further financial support. The AWS-3 spectrum auction, if approved, will provide the resources required to complete the removal and secure U.S. networks from potential cybersecurity threats linked to Chinese state actors.
• Auction Purpose: Generate funds to fully cover the Secure and Trusted Communications Networks Reimbursement Program.
• Spectrum Bands: AWS-3 spectrum licenses in the 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz bands.
• Financial Scope: $3.08 billion loan authorized, repayable from auction proceeds.
• Program Background: Initial $1.9 billion funding in 2021 fell short due to higher-than-expected costs.
• Security Risk: Aims to remove Huawei and ZTE equipment identified as national security threats.
• Legislative Action: Enabled by the National Defense Authorization Act (NDAA) passed in December 2024.
“Today’s proposal is a critical step toward finally filling the shortfall in the Rip and Replace program. I am confident that the FCC’s world-leading and award-winning auction team will meet this important moment,” said Chairwoman Rosenworcel.
