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.
FCC expects to conduct an auction beginning on December 8, 2020.
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)…”
“But as to its timing, there are some who argue that we should wait—indefinitely. They complain that we are refusing to sit on our hands and wait for Congress to legislate. It’s at once amusing and astounding that some making this criticism are the very same people who have previously complained that the agency isn’t moving quickly enough on mid-band spectrum. Indeed, by now, it’s become a tired refrain: Demand action on mid-band spectrum, but vote against putting 2.5 GHz spectrum to work for American consumers. Demand action on mid-band spectrum, but vote against making the 3.5 GHz band a testbed for 5G. Demand action on mid-band spectrum, but vote against letting New T-Mobile put underused spectrum to work in rural America. Demand action on mid-band spectrum, but vote against every single one of the infrastructure reforms needed to enable that spectrum to be used for 5G…”
So let me be clear regarding this tepid call to change course and sit still. For those waiting with bated breath for that favorite Washington catchphrase “the U-turn,” I have only one thing to say: You turn if you want to. This Chairman’s not for turning. The goal of leading the world in 5G is too urgent, the need to close the digital divide too pressing for us to put off action indefinitely. The time to act is now. And we are acting.”
