The Federal Communications Commission (FCC) has moved forward with plans to auction wireless spectrum to fund the removal of Chinese telecom equipment from U.S. networks.
This auction, approved by Congress, aims to raise nearly $3.1 billion to help U.S. telecom companies replace Huawei and ZTE infrastructure due to national security concerns. The funding is part of a broader effort to secure American communications networks from potential cybersecurity threats.
The auction will focus on reallocating advanced 5G-grade wireless spectrum in the AWS-3 band. The FCC originally auctioned AWS-3 licenses in 2014, but some winning bidders defaulted, leading to the return of approximately 200 licenses. Congressional guidelines require the FCC to auction these licenses by June 2026.
The estimated cost of removing Huawei and ZTE equipment was initially $4.98 billion, but Congress had only allocated $1.9 billion for the rip-and-replace program before approving additional funding through the upcoming auction. Without this financial support, some rural telecom networks risked shutting down, potentially impacting 911 emergency services.
The U.S. government has been actively encouraging allies to eliminate Chinese telecom equipment from their networks due to security concerns. In 2019, Congress mandated that telecom carriers receiving federal subsidies must remove Huawei and ZTE equipment. However, the lack of sufficient funding delayed the process, raising concerns about network reliability, particularly in rural areas.
Beyond the AWS-3 auction, the FCC is also considering the auctioning of additional mid-band spectrum in the Upper C-band. The Commission has invited public comments on whether and how to proceed with further spectrum auctions. A previous C-band auction in 2022 led to a dispute between U.S. airlines and wireless providers over potential interference with airplane altimeters. Recently, industry stakeholders have been working to ensure that future spectrum sales do not disrupt aviation safety.
This decision comes as the FCC seeks to regain authority to conduct spectrum auctions, which it lost in 2023 when its congressional mandate expired. Future auctions now require explicit legislative approval. The AWS-3 auction marks an important step in addressing both national security concerns and increasing consumer demand for wireless connectivity.
The AWS-3 spectrum consists of frequencies ranging from 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz. The FCC’s recent Notice of Proposed Rulemaking (NPRM) represents the first step in fulfilling its legal obligation to auction these licenses by June 2026. It is also the first proposed set of rules for commercial wireless spectrum sales issued by the FCC since 2020.
TelecomLead.com News Desk
