By Michelle Choi, an insider at Lease Advisors
Earlier this month at CTIA Super Mobility Week 2015, FCC Chairman Tom Wheeler announced in keynote comments that the highly anticipated 600 MHz spectrum auction will happen in March 2016. Criticized for delaying the auction, which would free up desperately needed spectrum, Wheeler defended the FCC, comparing the auction to a Swiss watch with many moving parts. He is adamant that the regulatory agency will move forward with their timeline over the next six months leading up to the March auctions.
In November, broadcasters who currently occupy the 600 MHz band will be able to choose whether they would like to participate in the reverse auction and offer up portions of the frequency. The FCC will then establish starting pricing and in January, wireless providers will be able to express their interest in participating in the upcoming auction. These television broadcast airwaves are some of the best wireless spectrum for cellular networks and carriers will potentially pay hundreds of millions of dollars for a single station’s spectrum. Carriers will then proceed to spend hundreds of billions of dollars building out networks
Cell phones operate between 600 MHz and 3000 MHz, but bands below 1 GHz (or 1000 MHz) have the best ability to provide service and require fewer towers to cover an area. Verizon and AT&T hold nearly 75% of the spectrum below 1 GHz, which explains both their dominance in the cellular provider industry and why the upcoming auction is so important.
With the launch of 5G around the corner, the spectrum auction and the availability of spectrum in the coming years will play an enormous role in shaping future networks. Wheeler said, “this is a once in a lifetime opportunity for 600 MHz, and a lot of people are looking at what they could do with the properties of that band and the physics.”
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