The FCC’s mid-band spectrum auction is having a rocky go. It got off to a slow start compared to the speedy pace of the previous C-band auction. Now, analysts are worried it may fail as bidding creaks along.
Thirty-three qualified entities are bidding in Auction 110, which is offering 4,060 new flexible‐use licenses for spectrum in the 3.45-3.55 GHz band to support next generation wireless services – including 5G. But the FCC set a reserve price of $14.77 billion to cover 110 percent of the expected sharing and repacking costs for Department of Defense users currently operating in the band, based on an estimate from the National Telecommunications and Information Administration.
That compares to the C-band auction, which had no reserve price. Winning bidders must pay the moving costs of satellite incumbents.
BitPath Analyst COO Sasha Javid said in his latest post that he became concerned about reaching the reserve price at Round 22. “In that round, we lost another 6% of requested bidding units, pushing the auction closer to failure. Needless to say, it will be an interesting next few days. Stay tuned! Auction failure could have significant policy ramifications for future federal spectrum clearing, so let’s hope this does not happen.”
Indeed, FCC Acting Chairwoman Jessica Rosenworcel told attendees of the Americas Spectrum Management Conference last week that the auction of 100 MHz in the 3.45-3.55 GHz band is crucial, because “it will demonstrate the future viability of coordination zones that require private carriers to depend on other federal actors for information or access. Plus, it will be a bellwether for where we take our spectrum efforts from here after the C-band auction finished as the most expensive auction in our history.”
The Commission has had to goose the current auction bidding rounds more than once. Now, there are five half-hour rounds a day. As of Round 26 on Friday, gross bids totaled just over $5.5 billion, much less than the reserve price.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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