Upcoming AWS-3 Auction May Yield Some Surprising Outcomes

UPDATE  FCC Auction 113, scheduled to commence on June 2, will make available 200 Advanced Wireless Services (AWS) spectrum licenses in the 1695-1710 MHz unpaired, 1755-1780 MHz, and 2155-2180 MHz bands, collectively, the AWS-3 bands. These licenses were originally sold in Auction 97 which concluded in January 2015. Of the total 1,611 licenses sold, 200 became available because certain winning bidders defaulted on payments.

Now the FCC wants to put these licenses to productive use after being idle for nearly a decade. Nineteen companies have already signed or are applying to participate in Auction 113. Certainly, the Big 3 mobile network operators – AT&T, Verizon and T-Mobile – big winners in Auction 97, are back, ostensibly to pick up licenses that might fill any coverage gaps. SpaceX is notable among the new participants. SpaceX’s bidding could lead to some interesting and unexpected outcomes. 

SpaceX’s Starlink low Earth orbit constellation provides broadband connectivity to user terminals on the ground using satellite standard Ku band frequencies. But for direct-to-cell (D2C) or direct-to-device (D2D) connectivity, Starlink is dependent on using mobile network operator frequencies to connect to the MNO subscriber’s mobile phones. For instance, Starlink and T-Mobile have partnered to deliver T-Mobile’s T-Satellite D2D service.

However, by owning its own spectrum and having subscriber devices programmed to those frequencies, Starlink gains a significant competitive advantage. Mid-band AWS-3 (paired and unpaired) and AWS-4/H-Block spectrum seem to fit the bill.

SpaceX agreed to buy EchoStar’s AWS-4 (2000–2020 MHz/2180–2200 MHz) and H-Block (1915–1920 MHz/1995–2000 MHz) spectrum licenses, Inside Towers reported. In a separate transaction, EchoStar also agreed to sell SpaceX its unpaired AWS-3 uplink licenses (1695–1710 MHz, 3GPP Band 70/n70).

In this case, the primary purpose of the AWS-3 “uplink-only,” unpaired spectrum is to provide low power mobile transmit capacity, that is, extra bandwidth for mobile phone-to-satellite uplinks. 

For all practical purposes, this uplink-only spectrum is most valuable for uplink-constrained situations, such as many users uploading at once. Fans at sporting events or entertainment venues are examples. It’s also useful for asymmetric band plans like 3GPP Band 70/n70, where uplink-only 1695–1710 MHz can be combined with downlink-heavy spectrum, such as AWS-4/H-Block, to better match real-world traffic patterns. 

Beyond the auction, SpaceX’s desire to acquire more spectrum could lead to some transactions with other AWS-3 license holders. For instance, the company could make deals to acquire the remaining unpaired spectrum it doesn’t already own from the EchoStar transaction, or paired spectrum for enhanced geographic coverage. Note that EchoStar/DISH won 324 of the 352 total AWS-3 uplink-only, unpaired licenses in Auction 97.

Owning spectrum in these bands gives SpaceX some options that other satellite operators do not have. AWS-4/Hblock spectrum licenses were originally designated for mobile satellite service and are well suited for D2D connectivity from LEO satellites. By investing in satellite-optimized spectrum, SpaceX is pursuing coverage expansion that, in certain use cases, bypasses traditional tower infrastructure altogether.

Such transactions suggest that sustainability in wireless infrastructure is increasingly being shaped by spectrum strategy. For terrestrial carriers, that means extracting more value from existing networks. For satellite operators, it means extending coverage with fewer ground-based assets. In both cases, spectrum choices are becoming as consequential as towers in determining how efficiently future networks are built and operated.

In Auction 97, EchoStar/DISH, bidding through its SNR Wireless LicenseCo and Northstar Wireless entities, acquired a combined total of 702 licenses, or 44 percent of the total 1,611 licenses won, including the unpaired spectrum, for $13.3 billion. EchoStar is not participating in Auction 113.

By John Celentano, Inside Towers Business Editor