The Federal Communications Commission (FCC) has unanimously approved a proposal to update bidding rules for the reauction of Advanced Wireless Services (AWS-3) spectrum licenses. This move marks a significant step towards bringing unused 5G-grade spectrum to market and funding a critical national security initiative.
On February 27, 2025, the Federal Communications Commission unanimously voted to propose new rules for the reauction of AWS-3 spectrum licenses. This decision represents the FCC’s first concrete step towards auctioning wireless spectrum for commercial use since 2020, following the lapse of its auction authority in early 2023.
The AWS-3 spectrum, which includes the 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz bands, is valuable for 5G networks due to its favorable propagation characteristics1. The upcoming auction will offer licenses that were either returned to the FCC’s inventory or remained unsold from the initial Auction 97 held in 2014-2015.
FCC Chairman Brendan Carr emphasized the importance of this move, stating, “It is time for the FCC to get back to auctioning spectrum.” He further noted that this decision would “help boost the capacity of our country’s wireless networks at a time when demand on those networks is only increasing.”
The proposed rules aim to update the AWS-3 service regulations to align with current standards. Key changes include:
- Instituting a 15 percent bidding credit for rural bidders.
- The gross revenue threshold for small business classification was raised to $55 million over the last five years.
- Updating Designated Entity bidding credits for rural and small business bidders.
The FCC must complete this reauction by June 23, 2026, as mandated by the National Defense Authorization Act passed by Congress last year. This timeline gives the Commission approximately 16 months to finalize rules and conduct the auction.
Importantly, the proceeds from this auction will be used to fund the Secure and Trusted Communications Networks Reimbursement Program, commonly known as the “rip and replace” initiative. This program aims to remove network equipment from Chinese manufacturers Huawei and ZTE, which the U.S. government has deemed potential security risks.
The wireless industry has shown significant interest in this upcoming auction. Roger Entner of Recon Analytics expects high participation, noting that the available licenses cover important markets. However, some analysts, like Armand Musey of Summit Ridge Group, caution that high bids are not guaranteed, given changes in market conditions since the original AWS-3 auction.
The FCC’s move comes amid broader discussions about spectrum allocation and management. In Congress, Representative Rick Allen (R-GA) has reintroduced the Spectrum Pipeline Act, requiring the FCC to auction between 1.3 GHz and 13.4 GHz for 5G and other commercial communications purposes within six years.
As the FCC moves forward with this process, industry stakeholders and policymakers will closely watch the development of final auction rules and their eventual outcomes. The success of this auction could have significant implications for the future of 5G deployment in the United States and the ongoing efforts to secure the nation’s communications infrastructure.
