T-Mobile, Verizon, AT&T watch as the FCC sets up its first C-band auction since 5G matured in the US

Heading into the FCC’s last C-band auction on February 17th, 2021, Verizon and AT&T were painted into a corner by T-Mobile. The latter’s use of the 2.5GHz mid-band spectrum it targeted with the acquisition of Sprint made it the early 5G leader in the U.S. That’s because both AT&T and Verizon started building out their 5G networks using millimeter wave airwaves (mmWave), which delivers the fastest data speeds.

AT&T and Verizon’s big blunder allowed T-Mobile to become the early 5G leader in the U.S.

The 2.5GHz mid-band spectrum travels further than mmWave, but not as far as low-band. And mid-band is faster than low-band, but not as fast as mmWave. So you can consider it to be the Goldilocks of wireless spectrum. By the time AT&T and Verizon realized that they had made a mistake, both carriers needed to obtain mid-band spectrum and the easiest way for them to get some was to participate in FCC auction 107, which was held on February 17th, 2021.

Congress has mandated that the first C-band auction since 2021 take place before July 4, 2027

Verizon and AT&T will probably be the largest bidders in the auction

Now that the NPRM has been passed by the FCC, the clock has started on a 30-day period where comments are solicited and are welcome. After another 30 days there will be a period for reply comments to be submitted. Currently, it appears that the July 2027 deadline will be met by the FCC and the other players involved in wireless. Once the bidding begins, we would expect to see Verizon and AT&T seek to add some more mid-band spectrum in the C-band to their holdings.

Verizon and AT&T will probably be the two largest bidders in the auction. Like the last one in 2021, we could see T-Mobile pick up some C-band airwaves even though it has continued to add to its 2.5GHz holdings whenever possible.

A recent deal by SpaceX/Starlink reduces the need for Musk’s firms to bid heavily

The FCC has been having talks with the National Telecommunications and Information Administration (NTIA), as well as the wireless and aviation industries leading the regulatory agency’s chairman, Brendan Carr, to say, “We have been working hard with all of those stakeholders, and I am pleased with the collaboration that we’ve been seeing.”

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