FCC chairman Ajit Pai announced that the US regulator plans to hold a public auction of the 3.7-4.2 GHz band. This means a rejection of the proposal from the so-called C-Band Alliance, for the satellite operators using the frequencies to sell the spectrum themselves to mobile operators and share the proceeds with the government.
In a letter to members of Congress, Pai said the aim was to get as much of the spectrum as possible into the hands of mobile operators quickly, to help speed the roll-out of 5G services. He plans for the FCC to sell in total 280 MHz in the range, while leaving the upper 200 MHz of the frequencies available for broadcasting.
The same day as Pai's letter was released, two Senators introduced legislation requiring a public auction of the frequencies. If approved, the 5G Spectrum Act would require the government to receive at least half the auction proceeds.
Verizon said it welcomed the legislation, which calls for a public auction of 280 MHz in the C band 2020. The company called on the FCC and Congress to make mid-band spectrum available quickly, saying the country is falling behind China, which has already released significant frequencies in this range.
Existing rights
The C-Band Alliance includes the satellite operators Intelsat, SES and Telesat. In a statement, they said the FCC chairman's decision did not take into account their rights under existing licences for the frequencies, nor the complicated task of vacating the spectrum and transitioning their networks. They had proposed the private auction as a means of compensation and agreed to cover the costs of refarming the spectrum.
The alliance members added that the "full cooperation of the satellite operators will be required to ensure the successful clearing of the C-band while protecting the incumbent broadcast services enjoyed by millions of US households". They said they would cooperate with the FCC "to develop an effective alternative plan and achieve the best outcome for the American public while protecting the interests of our users and the rights of our companies."
Eutelsat, which withdrew from the C-Band Alliance in September, said it welcomed the decision by the FCC to expedite the clearance of the frequencies for mobile 5G services.
