FCC Millimeter-Wave Auction Seen Likely in Late 2018
The FCC is likely to schedule an auction of the millimeter wave bands approved by the FCC last year for 5G in late 2018, carrier executives said. An auction of the bands teed up for the FCC’s Nov. 16 meeting is expected to come later. If the FCC holds this auction as expected next year, that should be early enough to get the spectrum in play as industry rolls out mobile 5G, the carrier executives said.
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FCC commissioners approved an order in July 201​6 reallocating the 28, 37 and 39 GHz bands for wireless broadband (see 1607140052). At the November meeting, the FCC will take up an order also reallocating the 24 and 47 GHz bands (see 1710270030). One carrier executive said since mobile standards for 5G aren’t likely before 2019, a 2018 auction would be early enough. Not everyone agrees. A former FCC spectrum official said it's possible an auction might not happen until much later than next year.
Verizon is maneuvering to become the best positioned of any of the carriers on high-frequency spectrum (see 1705170012). It's planning to acquire spectrum licenses from XO Holdings’ Nextlink Wireless (see 1706050042) and Straight Path with its high-frequency holdings (see 1705110052). AT&T, meanwhile, wants to buy FiberTower’s 24 and 39 GHz licenses (see 1702010035). The Competitive Carriers Association asked instead that FiberTower’s terminated licenses be returned to the FCC for re-auction (see 1704130055). All of the major carriers are expected to try to buy millimeter-wave spectrum for 5G.
Some observers question the potential of the high-frequency bands. “We are skeptical that millimeter wave spectrum will play a role in mobile 5G in that timeframe, if ever, so not sure getting that auction done in 2018 matters,” Walter Piecyk, analyst at BTIG, told us. But the FCC and many in the wireless industry remain focused on the high frequencies. Questions also emerged whether the FCC needs legislative language that would allow auction deposits to be sent directly to the Treasury Department (see 1710240065).
“As Chairman Pai has testified repeatedly, current law prevents the FCC from launching a large spectrum auction in the foreseeable future," an FCC spokeswoman said. "He looks forward to continuing his work with Congress to pass an FCC reauthorization bill and fix this problem in the near term.”
“The FCC must continue to free up the invisible infrastructure that will power next-generation networks," said Robert McDowell, Mobile Future chief public policy adviser. “America’s 5G leadership is dependent upon having a spectrum pipeline that can meet the explosive demand for the emerging IoT. The vigorous investment and innovation in the wireless sector is making mobile broadband possible at ever higher frequencies, and the country’s infrastructure must adapt to accommodate these advances.”
“The U.S. needs to maintain an open spectrum pipeline to win the global race to 5G, which will provide transformative innovations for millions of Americans in healthcare, energy and transportation among other sectors,” said Scott Bergmann, CTIA vice president-regulatory affairs. “We urge the FCC to move forward with a 2018 auction of millimeter wave bands for 5G wireless use, and to earmark additional spectrum for mobile broadband later this month.”
“Millimeter wave spectrum is an incredibly valuable resource and is especially critical to facilitating next-generation technologies and 5G,” said Steve Berry, president of the Competitive Carriers Association. Allowing Verizon to acquire an “enormous swath” of the spectrum “would be a disservice to competition and more importantly, consumers.” Competitive carriers also need the spectrum, Berry said. “All carriers, including rural and regional carriers, should have access to the enormous opportunities this high-band spectrum brings, and I urge the FCC to create a level playing field for all competitors,” he said.