The US regulator will award the 3.7–4.2GHz band through a public procedure, rejecting the industry’s proposal to hold a private auction and use the proceeds for rural broadband.
Background: In the US, satellite communications transmissions operate in the 3.7–4.2GHz band alongside Wi-Fi devices, cordless telephones, surveillance and weather radar systems. Due to its characteristics, the band has been eyed for future 5G use. Earlier this year, the FCC’s chairman Ajit Pai promised a decision on the future use of the band by Autumn 2019.
The FCC rejects the industry’s proposal: Recognising the imminent shift in the use of the spectrum, the C-Band Alliance (CBA) had proposed to the FCC to carry out a private auction itself, as a way to obtain compensation from the loss of those airwaves. The CBA would have then given part of the revenues to the US treasury (between 30% and 75%, depending on the outcome of the auction). In addition, the CBA committed to develop a proposal for the funding of an open-access 5G network for rural broadband, which could have included a combination of spectrum and capital contributions. The FCC’s chairman however has rejected the proposal, and decided to endorse the rulemaking the FCC is preparing for the C-band. Pai has now come out in favour of a public auction to be run by the FCC’s own staff.
What to expect: The timeframe for the C-Band auction is not yet certain; however, it is now clear that the FCC will aim to auction 280MHz of spectrum in that band, with a view to “afford all parties a fair opportunity to compete for this 5G spectrum, while preserving the availability of the upper 200MHz of this band for the continued delivery of programming”. In the meantime, two US Senators have introduced a bill called the ‘5G Spectrum Act’, mandating the FCC to conduct a public auction of C-band spectrum; this complements Pai’s announcement.
