US FCC spectrum auction raises $3.5 bn to fund Chinese equipment removal

The Federal Communications Commission concluded its AWS‑3 (Auction 113) spectrum auction, selling 200 mid‑band licenses across the 1695‑1710 MHz, 1755‑1780 MHz and 2155‑2180 MHz bands. The auction attracted 17 qualified bidders, ran 72 rounds of competitive bidding and generated more than $3.5 billion in winning bids.

Congress directed that up to $3.3 billion of the proceeds be used for the FCC’s “Rip and Replace” program, which reimburses carriers for removing Chinese‑made Huawei and ZTE equipment from U.S. wireless networks. The program had previously estimated a $4.98 billion cost, but only $1.9 billion had been authorized before the auction. To date, 42 % of funded recipients have completed the equipment replacement, with delays cited to permitting, supply‑chain constraints, labor shortages and severe weather.

The auction marks the FCC’s first major spectrum sale in four years and is intended to support the expansion of 5G services and lay groundwork for future 6G deployments. While the FCC has not disclosed the winning bidders, analysts expect participation from major U.S. carriers such as AT&T, Verizon and T‑Mobile, as well as satellite operators like SpaceX and AST SpaceMobile.