FCC Auction Authority Restored, Endorsed by Carr
The One Big Beautiful Bill Act (OBBBA), a significant budget reconciliation law, was signed into law by President Donald Trump on July 4, 2025. While the bill is renowned for its spending cuts and tax provisions, it also brings about substantial changes in telecommunications policy, particularly regarding spectrum auctions by the Federal Communications Commission (FCC).
One of the key aspects of the OBBBA is the re-establishment and extension of the FCC's spectrum auction authority, which had lapsed in 2023 due to congressional gridlock. This restoration allows the FCC to conduct new auctions for several key frequency bands, including 600 MHz, 3.1–3.45 GHz, and potentially parts of the 6 GHz band.
These bands are crucial for expanding mid- and low-band spectrum capacity, supporting the growth of 5G networks, particularly in underserved rural and suburban areas. The reopening of spectrum auctions under the OBBBA is expected to benefit major U.S. mobile operators like AT&T, Verizon, and T-Mobile by unlocking additional spectrum resources needed for enhanced wireless coverage and capacity.
However, the auctioning of the 6 GHz band is a contentious issue. While many global jurisdictions have designated the 6 GHz range for unlicensed and shared use, supporting Wifi 6E and Wifi 7 innovations, the OBBBA's move to auction it for exclusive use in the U.S. may hinder Wifi innovation, fragment the global device ecosystem, and complicate hardware interoperability and chipset manufacturing. Industry groups such as the Wi-Fi Alliance and NCTA have formally objected to this approach.
The OBBBA also orders the Assistant Secretary of Commerce for Communications and Information and the FCC to identify approximately 800 MHz of spectrum for auction over the next eight years. The bill mandates that the FCC auction 300 MHz of spectrum, including 100 MHz in the band between 3.98 GHz and 4.2 GHz within two years after the act is passed. The remaining 500 MHz of spectrum to be auctioned will be chosen from the spectrum range of 1.3 GHz to 10.5 GHz.
Federal Communications Commission Chair Brendan Carr and Republican FCC member Olivia Trusty have both congratulated President Trump and Congressional Republicans on the passage of the bill. Trusty looks forward to working with her colleagues at the FCC to bring the 800 megahertz of spectrum to market.
The auctions mandated by the bill could potentially generate up to $88 billion in revenue, according to the Congressional Budget Office. The bill aims to close the digital divide and fuel next-generation technologies, creating a large pipeline of spectrum to be auctioned.
In conclusion, the OBBBA re-establishes and extends FCC authority to auction spectrum through at least 2034, enabling key auctions that will shape U.S. wireless infrastructure development for years to come. This strategic policy shift emphasizes tighter government control and monetization of spectrum, which has significant implications for telecom operators, technology innovation, and the future landscape of wireless connectivity in the U.S.
- The OBBBA re-establishes and extends the Federal Communications Commission's (FCC) authority to auction spectrum, facilitating digital content distribution via satellite and leveraging technology for wireless infrastructure development.
- The reinstatement of the FCC's spectrum auction authority enables auctions for key frequency bands like 600 MHz, 3.1–3.45 GHz, and potential parts of the 6 GHz band, supporting the growth of 5G networks, particularly in rural and suburban areas.
- However, the auctioning of the 6 GHz band is a contentious issue, as it may hinder Wi-Fi innovation, fragment the global device ecosystem, and complicate hardware interoperability and chipset manufacturing, according to industry groups like the Wi-Fi Alliance and NCTA.
- The OBBBA mandates the FCC to auction approximately 800 MHz of spectrum over the next eight years, with a focus on generating revenue and closing the digital divide to fuel next-generation technologies.
- Federal Communications Commission Chair Brendan Carr and Republican FCC member Olivia Trusty have commended the passage of the OBBBA, with Trusty expressing enthusiasm for working with her colleagues to bring the auctioned spectrum to market, potentially generating up to $88 billion in revenue for the U.S. government.
