Heading into the FCC's last C-band auction on February 17th, 2021, Verizon and AT&T were painted into a corner by T-Mobile. The latter's use of the 2.5GHz mid-band spectrum it targeted with the acquisition of Sprint made it the early 5G leader in the U.S. That's because both AT&T and Verizon started building out their 5G networks using millimeter wave airwaves (mmWave), which delivers the fastest data speeds.
AT&T and Verizon's big blunder allowed T-Mobile to become the early 5G leader in the U.S.
Unfortunately for AT&T and Verizon, they didn't consider that mmWave signals travel short distances. Low-band signals travel the longest distance, which is why they are used for nationwide networks. But they also offer the slowest data speeds. T-Mobile decided to go with mid-band, which is why it paid $26 billion for Sprint (you didn't think that it wanted Sprint for its operations, did you?).
Cell tower currently deployed by Verizon. | Image credit-Verizon
The 2.5GHz mid-band spectrum travels further than mmWave, but not as far as low-band. And mid-band is faster than low-band, but not as fast as mmWave. So you can consider it to be the Goldilocks of wireless spectrum. By the time AT&T and Verizon realized that they had made a mistake, both carriers needed to obtain mid-band spectrum and the easiest way for them to get some was to participate in FCC auction 107, which was held on February 17th, 2021.
Congress has mandated that the first C-band auction since 2021 take place before July 4, 2027
From the scrapbook. Verizon and AT&T win C-band licenses via FCC auction, February 24, 2021. | Image credit-PhoneArena
And that brings us to the first C-band auction in years. Last week, the FCC passed a Notice of Proposed Rulemaking (NPRM) that lays out the options available for auctioning 100MHz to 180MHz of upper C-band spectrum. Congress has mandated that these airwaves be auctioned off by July 4, 2027. Among the options listed in the NPRM are those that will allow 5G/6G signals to co-exist with radio altimeters.
Verizon and AT&T will probably be the largest bidders in the auction
Now that the NPRM has been passed by the FCC, the clock has started on a 30-day period where comments are solicited and are welcome. After another 30 days there will be a period for reply comments to be submitted. Currently, it appears that the July 2027 deadline will be met by the FCC and the other players involved in wireless. Once the bidding begins, we would expect to see Verizon and AT&T seek to add some more mid-band spectrum in the C-band to their holdings.
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Verizon and AT&T will probably be the two largest bidders in the auction. Like the last one in 2021, we could see T-Mobile pick up some C-band airwaves even though it has continued to add to its 2.5GHz holdings whenever possible.
A recent deal by SpaceX/Starlink reduces the need for Musk's firms to bid heavily
The FCC has been having talks with the National Telecommunications and Information Administration (NTIA), as well as the wireless and aviation industries leading the regulatory agency's chairman, Brendan Carr, to say, "We have been working hard with all of those stakeholders, and I am pleased with the collaboration that we’ve been seeing."
Some of the pressure on the FCC to release additional upper C-band has been coming from Elon Musk, whose SpaceX/Starlink satellite businesses have been seeking more spectrum for their alternatives to terrestrial connectivity. But SpaceX has agreed to purchase 2 GHz and AWS-3 spectrum from EchoStar in a $17 billion transaction, which has reduced the importance of Musk's firms taking part in the auction. That's not to say that SpaceX/Starlink won't have a presence during the bidding.
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Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.
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