As wireless carriers in the U.S. look to build out their 5G networks, they’ve partly looked to acquire mid-band spectrum through auctions held by the FCC. Most talked about has been the C-Band. This was acquired by AT&T and Verizon and has experienced serious delays due to possible interference with aircraft tools. However, another major auction just took place. This time for licenses of wireless spectrum that sits between the 2.5 gigahertz and 3.5 gigahertz range of radio frequencies. In comparison, it was smaller than the previous C-Band auction.
This auction, for the 3.45 GHz spectrum, started back in October. It has finally come to an end with AT&T and Dish network as its big winners. AT&T spent $9.1 billion and Dish spent $7.3 billion. T-Mobile was the third-highest bidder in the auction, spending $2.9 billion. Verizon Communications did not participate in the auction, likely because of the millions (together with AT&T) already spent on the C-Band.
Per the FCC this past Friday, the auction brought in more than $22.5 billion in total proceeds for the 5G wireless spectrum. Congress required a portion of the proceeds, which are going to be used to pay for new equipment. This is meant to ensure that existing military equipment can coexist with cell towers and other gear used by wireless carriers when they deploy 5G service. All other money from the auction will go to the US Treasury.
Overall, AT&T is still coming in at the bottom when compared to T-Mobile and Verizon in 5G coverage, though that could change with the addition of this mid-band spectrum. These airwaves were once reserved for the military, but will soon be used for 5G wireless service, hopefully without any delays! The mid-band spectrum has the ability to connect more devices and offer real-time feedback, which is helping to advance things like self-driving cars and advanced augmented reality experiences. Mid-band spectrum provides more-balanced coverage and capacity due to its ability to cover a several-mile radius with 5G, despite needing more cell sites than lower-tiered spectrum bands.
Even after all the mid-band coverage, there is still demand for more mobile services. Wireless carriers have all been asking for more airwaves to be made available. In response, the FCC has been working to repurpose spectrum from other industries, including TV and satellite broadcasters. They’ve also looked to commercial entities for spectrum and are coordinating with certain government agencies like the Defense Department, to provide commercial providers with more access to spectrum.
In recent years, the wireless industry has dedicated more than $100 billion into acquiring these airwave licenses. The FCC is planning for even more auctions in the future.