The Federal Communications Commission (FCC) said it taken action to make mid-band spectrum in the 3.45-3.55 GHz band available for auction, to facilitate 5G deployment across the country. The FCC consulted last year on allowing flexible use of the 3.45-3.55 GHz band. The latest action means the FCC is on track for a 5G auction this year.
Last year’s Consolidated Appropriations Act required the commission to start a auction for licenses in the 3.45-3.55 GHz band by the end of 2021. The rules now adopted will reallocate 100 MHz of spectrum in the 3.45 GHz band for flexible use wireless services. They also establish a framework for the 3.45 GHz band that will enable commercial use by different providers, while also ensuring that federal incumbents are protected from interference. Together, the 3.45 GHz band and the neighbouring 3.5 GHz and 3.7 GHz bands represent 530 MHz of contiguous mid-band spectrum for 5G.
The FCC is now inviting comments on procedures for the auction of 100 MHZ of mid-band spectrum in the 3.45–3.55 GHz. Bidding in Auction 110 is expected to start in early October.
The auction will offer up to 100 MHz of spectrum divided into ten 10 MHz blocks licensed by geographic areas known as Partial Economic Areas (PEAs), for a total of 4,060 flexible-use licenses across the contiguous US. The proposed procedures would include a clock phase for bidding on generic blocks in each geographic area followed by an assignment phase for bidding on frequency-specific license assignments. It also proposes bidding credit caps and specific upfront payment and minimum opening bid amounts. There is also a proposal for a reserve price of over USD 14.7 billion for flexible-use licenses, so that auction proceeds cover the expected sharing and relocation costs for federal users in the band.
