On February 28, 2025 the FCC released a Notice of Proposed Rulemaking (“NPRM”) seeking comment on proposed updates to the rules for auctioning AWS-3 spectrum licenses in the 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz bands. This auction is mandated by the Spectrum and Secure Technology and Innovation Act, requiring the FCC to auction unassigned AWS-3 spectrum by June 23, 2026. The proceeds would fund the Supply Chain Reimbursement Program, which assists in removing and replacing telecommunications equipment from Huawei and ZTE that is considered a security risk.
The NPRM seeks public comment on proposed changes to competitive bidding rules, particularly those affecting small businesses and rural service providers. The FCC aims to modernize the AWS-3 designated entity (“DE”) rules, harmonizing them with more recent spectrum auction standards.
Key Points in the NPRM:
- Updates to Small Business Bidding Credit Eligibility
- The FCC proposes new definitions for small businesses participating in the AWS-3 auction:
- Small business: Entities with average gross revenues of $55 million or less over the last five years.
- Very small business: Entities with average gross revenues of $20 million or less over five years.
- These updated definitions align with the Small Business Act, which now requires revenue calculations based on a five-year period instead of three years.
- Rural Service Provider Incentives
- Recognizing the challenges in rural and remote areas, the FCC proposes a dedicated 15% bidding credit for qualifying rural providers, including those in Alaska, who do not also claim a small business credit.
- The updated bidding credit structure is designed to increase broadband access in areas with high infrastructure costs and limited competition.
- Harmonizing Competitive Bidding Rules
- The AWS-3 auction would adopt updated competitive bidding rules used in recent auctions for 5G-ready spectrum.
- The eligibility requirements for small business bidding credits would align with the FCC’s general Part 1 competitive bidding rules, ensuring consistency across auctions.
- The draft NPRM also proposes codifying the five-year revenue benchmark for small business qualification, replacing the previous three-year standard.
The following notable changes were made from the draft item:
- ¶¶ 18-21 – The FCC added a section seeking comment on a tribal licensing window, similar to the one adopted in the 2.5 GHz band auction, which opened a pre-auction window for Tribal Nations to obtain licenses for spectrum over Tribal lands in rural areas. Specifically, the FCC seeks comment on (1) its authority to adopt a similar window in the AWS-3 auction, (2) whether these licenses provide sufficient bandwidth for Tribal Nations to offer broadband wireless services; (3) coordination concerns; (4) eligibility criteria; and (5) procedures for any such window, among other things.
Comments are due March 31, 2025.
Reply Comments are due April 14, 2025.
Please Contact Us if you have any questions.
The post FCC Releases Adopted AWS-3 NPRM first appeared on Telecommunications Law Professionals, PLLC.