FCC Tunes AWS-3 Auction Rules for Small Biz Boost
Published Date: 3/13/2025
Proposed Rule
Summary
The FCC is updating the rules for who can get special discounts when bidding on AWS-3 wireless licenses, which cover important airwaves for things like mobile internet. These changes aim to match the rules with the Small Business Act, helping small businesses compete better. If you want to weigh in, comments are due by March 31, 2025, so get ready to share your thoughts!
Analyzed Economic Effects
5 provisions identified: 5 benefits, 0 costs, 0 mixed.
AWS-3 small business thresholds raised
For AWS-3 licenses, the FCC proposes that a "small business" would be an entity with average gross revenues not exceeding $55 million for the preceding five years and would be eligible for a 15% bidding credit. A "very small business" would be an entity with average gross revenues not exceeding $20 million for the preceding five years and would be eligible for a 25% bidding credit; any discounts would be subject to an auction-by-auction cap.
Five-year averaging in part 1 rules
The FCC proposes to change its general competitive bidding rules (part 1) so that small business bidding credit eligibility is based on average gross revenues for the preceding five years rather than three years. The standardized schedule in the proposed part 1 would make businesses with five-year average revenues of up to $4 million eligible for a 35% credit, up to $20 million eligible for a 25% credit, and up to $55 million eligible for a 15% credit.
15% rural service provider credit
For AWS-3 auctions, the FCC proposes a separate 15% bidding credit for eligible rural service providers that do not claim a small business bidding credit, subject to the caps specified in the part 1 rules.
Possible Tribal pre-auction licensing window
The FCC seeks comment on whether to use a pre-auction Tribal licensing window for relevant inventory AWS-3 licenses similar to the 2.5 GHz Tribal window adopted in 2019, which would give federally recognized Tribes or Tribal entities an opportunity to obtain licenses for unassigned spectrum over Tribal lands in rural areas.
Auction proceeds to fund reimbursement program
The NPRM states that proceeds from the AWS-3 auction will support the FCC's Supply Chain Reimbursement Program, which reimburses eligible advanced communications service providers for costs to remove, replace, and dispose of Huawei or ZTE equipment and services.
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Key Dates
Department and Agencies
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