Big Beautiful Bill Unlocks Skywaves for Wireless Gold Rush
Published Date: 7/31/2026
Rule
Summary
In this document, the Federal Communications Commission (Commission) adopted a Report and Order, Order of Proposed Modification, and Order on Reconsideration (Order), that expands the ecosystem for next-generation wireless services in the 3.7-4.2 GHz band (C-band) by making 160 megahertz of the 3.98-4.2 GHz band (Upper C- band) available for terrestrial wireless flexible use. This action is pursuant to Congress' direction in the One Big Beautiful Bill Act to complete a system of competitive bidding by July 4, 2027, for at least 100 megahertz of spectrum in the 3.98-4.2 GHz band. The Order creates a single 3.7 GHz Service that spans 3.7-4.14 GHz and adopts competitive bidding procedures for an auction. The Order largely applies the current Lower C-band licensing and operating rules to the Upper C-band, but it imposes more forward-leaning performance requirements. The Commission also generally adopts the Lower C-band technical rules for the Upper C-band, with certain modifications designed to reinforce a successful coexistence environment with adjacent band radio altimeters. The Order requires new licensees in the Upper C-band, as a condition of their licenses, to reimburse defined incumbent Fixed Satellite Service (FSS) licensees for reasonable and necessary costs associated with migrating FSS operations out of the reconfigured portion of the Upper C-band, consistent with the Commission's Emerging Technologies precedent. The Order also provides incentives to eligible space station operators that meet their clearing obligations by specified transition deadlines. Finally, new Upper C-band licensees must provide rebates for defined classes of eligible aircraft owners and operators to facilitate compliance with the FAA's radio altimeter retrofit requirements, which are designed to promote successful coexistence between Upper C-band licensees and radio altimeters in the 4.2-4.4 GHz band.
Analyzed Economic Effects
7 provisions identified: 4 benefits, 1 costs, 2 mixed.
160 MHz of Upper C‑Band Auctioned
The FCC will reconfigure and auction 160 megahertz of the Upper C‑band for terrestrial wireless use in 3.98–4.14 GHz and combine the Lower and Upper C‑bands into a single 3.7 GHz Service spanning 3.7–4.14 GHz. This action implements Congress' direction in the OBBB Act and aims to complete competitive bidding for the band by July 4, 2027.
Small Business Bidding Credits Set
The FCC will use its part 1 competitive bidding rules and apply the Lower C‑band designated entity rules to the Upper C‑band auction. For bidding credit eligibility the FCC defines a 'small business' as having average gross revenues ≤ $55 million (5‑year) with a 15% bidding credit, and a 'very small business' as ≤ $20 million with a 25% bidding credit; the 35% credit for ≤ $4 million entities will not be offered.
Rural Provider Bidding Credit Adopted
The FCC will offer a 15% bidding credit for rural service providers (as defined in Sec. 1.2110(f)(4)(i)) in the Upper C‑band auction, subject to the usual bidding credit cap. Proposals to increase this percentage or to run a rural reserve auction were declined.
New Licensees Must Reimburse FSS Incumbents
New Upper C‑band terrestrial licensees will be required, as a condition of their licenses, to reimburse defined incumbent Fixed Satellite Service (FSS) licensees for reasonable and necessary costs to migrate FSS operations out of the reconfigured Upper C‑band, consistent with the Commission's Emerging Technologies precedent. The Order also provides incentives to space station operators that meet clearing obligations by specified transition deadlines.
Aircraft Altimeter Retrofit Rebates Required
New Upper C‑band licensees must provide rebates to defined classes of eligible aircraft owners and operators to help them comply with FAA radio altimeter retrofit requirements tied to coexistence with the 4.2–4.4 GHz radio altimeter band. The rebates are intended to facilitate the radio altimeter upgrade process that supports safe aircraft operations near the new terrestrial wireless operations.
No Tribal Licensing Window Now
The FCC declined to adopt a pre‑auction or concurrent Tribal licensing window for the Upper C‑band, finding the statutory July 4, 2027 competitive bidding deadline and transition cost allocation under the Emerging Technologies framework make a Tribal window infeasible. The FCC will continue to consider other options to promote connectivity to Tribal lands but will not reserve spectrum via a Tribal window in this proceeding.
Contiguous U.S. Only: Non‑contiguous Areas Excluded
The Upper C‑band reconfiguration and terrestrial licensing apply only in the contiguous United States; the FCC declined to reconfigure or auction Upper C‑band spectrum outside the contiguous United States (including Alaska and Hawaii) and will preserve existing FSS uses there. The FCC cited ongoing need for C‑band satellite services outside the contiguous U.S. for services such as telehealth and E911.
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Key Dates
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