OBBB and Spectrum

The cellular industry is taking a victory lap after passage of the One Big Beautiful Bill (OBBB). The law reinstates the FCC’s authority to hold spectrum auctions and sets goals for the FCC to raise as much as $85 billion from selling spectrum. The following are the key provisions of the new law.

The bill instructs the FCC and the Assistant Secretary of Commerce (NTIA) to identify at least 800 megahertz of spectrum to be auctioned – between 1.3 GHz and 10.5 GHz. The law largely leaves it up to the two parties to determine the spectrum that will be up for sale. It will be interesting to how the FCC and NTIA coordinate on this.

The FCC is ordered to auction at least 300 megahertz of spectrum within two years, which must include at least 100 megahertz of the C-Band spectrum between 3.98-4.2 GHz. The FCC and NTIA must then identify 500 megahertz of spectrum that will support full-power commercial licensed use cases. That’s been a major goal for years for CTIA, the lobbyist for the cellular industry.

The bill carves out two bands of spectrum that cannot be considered for auction or relocation. The 3.1-3.25 GHz spectrum has been used by the military for many years. Also excluded is spectrum between 7.4-8.4 GHz, which is part of the X-Band spectrum that is used for military satellites.

The new law does not protect CBRS spectrum, which sits at 3-55 – 3.7 GHz. This spectrum is being used by today by over 1,000 entities today such as WISPs, private networks, ports, schools, sports venues, hospitals, airports, and the DOD. Part of this spectrum band is available for use by anybody, but subject to a system that shares bandwidth among users. AT&T had proposed late in 2024 that the FCC auction CBRS, which led to a letter signed by 23 ISPs from Texas and WISPA and sent a letter to Senators Ted Cruz and John Cornyn of Texas.

The bigger controversy comes from considering auctioning all or part of the 6 GHz spectrum that is used today for WiFi. The FCC approved this as public spectrum in April 2020, and the bandwidth available in this spectrum band has enabled the development of WiFi 6 and WiFi 7. Critics of the legislation point out that WiFi is by far the most valuable spectrum in the country. A study published by NCTA said the value of WiFi to the U.S. economy is $1.6 trillion in 2025, and the value is growing rapidly and will be 33% more by 2027.

The potential raid on the 6 GHz spectrum has raised alarm bells worldwide. This spectrum has been earmarked around the world for WiFi and unlicensed and shared spectrum use. The fear is that carving out some of U.S. 6 GHz spectrum will threaten WiFi innovation, and would make it harder to develop interoperable hardware and chip sets.

Trade groups such as the Wi-Fi Alliance and NCTA have filed objections with the FCC that suggested that any value generated by cellular use would pale against the huge benefits of expanded WiFi.

The FCC is going to have a major battle to auction 6 GHz spectrum that will pit the biggest cellular carriers against ISPs and the many other industries that benefit from WiFi. I remember a quote in an article a few years ago that resonated with me, which said that most people use WiFi from waking until bedtime, making it the most valuable spectrum.

2 thoughts on “OBBB and Spectrum

  1. Yep, I imagine there are millions of eyeballs watching this go down… If CBRS is taking from Wisps ( let alone all the other use cases ) there will be many companies that simply fold up and go away. We would likely survive, if it happens soon. But CBRS has been our main driver for recent client installs. We will quickly reach that “devastated by this” position.

    6 Ghz we’re using for mmWave backup right now mostly, but we do, ironically enough, have a government DIA on a PTP 6 Ghz link. A Forest Service office. They would be chopping their own neck to pull that, but I suppose that one office means nothing in the grand scheme of things.

  2. Interesting! I still have an issue with the concept of “selling” spectrum. If indeed, it is a sale, then it would be an asset trade (spectrum asset traded for cash asset) which results in no net income that could be used to balance a budget (income versus expense). 25 years ago, I suggested the sale of long term spectrum leases which would indeed be income ( https://hallikainen.org/org/pub/6513196902.pdf ). The paper also discusses license-free shared use of spectrum, comparing it to public parks.

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