On November 18, FCC Chairman Ajit Pai told several members of Congress that he had decided there should be a public auction for the C-Band spectrum that sits between 3.7 GHz and 4.2 GHz. The spectrum has historically been used by satellite companies for communication between satellites and earth stations. This is prime spectrum for 5G cellular broadband, but also could provide a huge benefit to fixed wireless providers in rural America. Chairman Pai will be asking the rest of the FCC commissioners to approve an order sometime after the first of next year. Making an early announcement is a bit unusual since major orders like this are usually announced by releasing a written order that comes after a vote of the Commission.
The letters from Chairman Pai describe four reasons behind the decision: First, we must make available a significant amount of C-Band spectrum for 5G. Second, we must make spectrum available for 5G quickly. Third, we must generate revenue for the federal government. And, Fourth, we must protect the services that are currently delivered using the C-Band so that they can continue to be delivered to the American people.
Missing from Chairman Pai’s letter was any mention of making the C-Band spectrum available for rural fixed wireless. WISPA and other rural proponents have been lobbying for sharing the spectrum so that the C-Band could be used for urban 5G while also benefitting faster rural broadband.
This has been an unusual docket from the start because the satellite providers, under the name of the C-Band Alliance (CBA) offered to relocate to the higher part of the spectrum if they could hold a private auction to sell the vacated spectrum to the cellular carriers. There were several problems with that offer. First, the satellite providers would make billions of dollars of windfall profits through selling spectrum that they don’t own. Federal law makes it clear that the FCC has the right to award or take-back spectrum and it would have been a major precedent for license holders to be able to sell spectrum for a huge profit. There were also obvious concerns about transparency, and it was feared that backroom deals would be struck to give spectrum to the big cellular carriers for bargain prices while still benefitting the satellite companies.
There was also a political nuance. The CBA proposed to give some of the proceeds of the private auction to the federal government, similar to what happens in an FCC auction. However, money given that way would go towards paying off the federal deficit. Proceeds of FCC auctions can be earmarked for specific uses and legislators all wanted to see the spectrum sold by FCC auction so that they could use some of the money.
The rural spectrum-sharing idea might not be not dead since the announcement was made by short letter. However, the Chairman could easily have mentioned rural broadband in the letters to legislators and didn’t. The Chairman has made numerous speeches where he said that solving the rural digital divide is his primary goal. It’s clear by his actions during the last few years that deregulation and giveaways to the big carriers under the guise of promoting 5G are the real priority of this FCC.
The C-Band spectrum sits next to the recently released CBRS spectrum at 3.5 GHz. Just as additional spectrum benefits 5G, fixed wireless technology improves significantly by combining multiple bands of frequency. Rural carriers have been arguing for years that the FCC should allow for the sharing of spectrum. Proponents of rural broadband argue that urban and rural use of spectrum can coexist since most 5G spectrum is only going to be needed in urban areas. They believe that such spectrum can be used in a point-to-point or point-to-multipoint configuration in rural America without interfering with urban 5G. The big cellular carriers are reluctant to share spectrum because it causes them extra effort, so only the FCC can make it happen.
If the final order doesn’t require frequency sharing, it will be another slap in the face for rural broadband. Since there is not yet a written order, proponents of rural broadband still have an opportunity to be heard at the FCC on the topic. However, I fear that the issue has already been decided and that rural broadband will again be ignored by the FCC.