2022 FCC 2.5 GHz 5G Auction Start Expected
With the 3.45 GHz auction starting in October, FCC and industry officials say it looks increasingly likely the 2.5 GHz auction will be pushed into 2022. The agency hasn't announced a start for what would be the following 5G auction. Educational broadband service (EBS) licensee and other comments say the agency should address problems with inventory of markets available before a sale (see 2105280032).
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Acting Chairwoman Jessica Rosenworcel says an announcement would come after the comment cycle (see 2104220036). Replies were due May 27. Commissioner Brendan Carr pressed to disclose a start.
T-Mobile, widely seen as most likely to dominate the auction, asked for such an announcement. “Now that the pleading cycle … has ended, the Commission should -- consistent with precedent -- promptly set a date by which the auction of the 2.5 GHz spectrum will begin,” T-Mobile said last week in a call with Commissioner Nathan Simington. The agency and the carrier didn't comment Monday.
“While a December start to the 2.5 GHz auction is still in the cards if the 3.45 GHz auction ends unusually fast, it appears very unlikely,” Sasha Javid, BitPath chief operating officer, told us. “If I am the FCC, I would rather resolve the open licensing issues associated with the blocks to be put up for sale and not hurry auction design decisions.” T-Mobile has “an enviable spectrum position for 5G so it is not clear why the FCC needs to rush,” he said. Javid predicted Dish Network and AT&T “are and should be” more focused on 3.45 GHz bidding.
Neville Ray, T-Mobile president-technology, said at a UBS conference last week the company has an average of 160 MHz of 2.5 across the U.S., about half its mid-band holdings, which it’s using as a foundation for 5G. “Before our competition really gets started on … mid-band deployment, we're going to have a powerhouse network out there with nationwide coverage,” he said. Ray said mostly rural licenses will be available in the auction, and T-Mobile “certainly” expects delays, but the auction is “going to happen in 2022.”
“The 2.5 GHz auction will likely take place next year,” said Katherine Messier, executive director of EBS provider Mobile Beacon. “There are many commenters that have pointed out issues with the current list of available licenses. Since the auction is unlikely to happen this year, we think it’s important to take the time this year to fix those issues.”
“Timing would be very tight” for 2021, said Todd Gray, lawyer for the National EBS Association. It wouldn’t be a surprise if “it spills over into 2022," he said.
“T-Mobile has already conceded that the 2.5 GHz auction is going to follow the 3.45 GHz auction, which is expected to begin in October,” emailed Mark Colwell, Voqal director-telecommunications strategy: “The only prospect that we see for a 2.5 GHz auction in 2021 would be via a single-round format at the tail end of the year.”