FCC Plans Massive Wireless License Auction—Bidder Comments Wanted
Published Date: 8/3/2026
Proposed Rule
Summary
The FCC is gearing up to auction 3,248 flexible-use licenses in the 3.98-4.14 GHz band on April 27, 2027, opening doors for next-gen wireless services. Companies interested in these licenses should share their thoughts on the auction rules by August 24, 2026, with replies due by September 8. This auction could shake up wireless tech and investment, so get ready to bid and innovate!
Analyzed Economic Effects
11 provisions identified: 4 benefits, 6 costs, 1 mixed.
Auction 115: 3,248 Licenses Offered
If you are a company that might bid, the FCC plans to offer 3,248 flexible-use licenses in the 3.98–4.14 GHz band, with bidding tentatively starting on April 27, 2027. The licenses cover eight 20-megahertz blocks per market across the contiguous U.S.; the 4.14–4.16 GHz portion is a guard band and not for auction.
Small Business Bidding Credit Rates
The FCC will use two small-business tiers: entities with average annual gross revenues over the past five years up to $55 million are eligible for a 15% bidding credit, and entities with average annual gross revenues up to $20 million are eligible for a 25% bidding credit. A 15% rural service provider bidding credit is also available for eligible rural providers that are not claiming a small-business credit.
Default Penalty: 15% Additional Payment
The FCC proposes an additional default payment of 15% (within the 3%–20% statutory range) to be assessed if a winning bidder defaults or is disqualified after the auction. Default payments also include a deficiency equal to the difference between the defaulter's winning bid and the subsequent winning bid for the same license.
Licensees Must Pay Clearing Costs; Deadlines
Entities that win licenses will be responsible for costs of clearing incumbent operations in the Upper C-band. Incumbent transition deadlines are December 30, 2030 for PEAs 1–41 and 43–76, and June 30, 2031 for PEAs 77–211 and others specified.
Caps on Total Bidding Credits
The FCC proposes a $25 million cap on the total bidding credit amount any eligible small business may receive in Auction 115, and a $10 million cap on total rural service provider bidding credits. Additionally, a $10 million cap is proposed for bidding credits applied to licenses in markets with population of 500,000 or less.
Upfront Payment Rates and Minimum
To qualify to bid, applicants must submit an upfront payment. Proposed rates per generic 20‑MHz block are $0.015 per MHz-pop for PEAs 1–50, $0.003 per MHz-pop for PEAs 51–100, and $0.0015 per MHz-pop for all other PEAs, subject to a $500 minimum per block and standard FCC rounding rules.
Upfront Payment Sets Bidding Eligibility
The FCC proposes that each bidder's initial bidding eligibility will be set by the amount of its upfront payment, with one bidding unit per $10 of upfront payment; a bidder cannot increase its eligibility during the auction. Bidders must therefore calculate and submit an upfront payment large enough to cover the maximum bidding units they might need.
95% Activity Requirement in Clock Phase
The FCC proposes an activity rule requiring bidders to be active on between 90% and 100% of their bidding eligibility each round, with an initial activity requirement set at 95%. Failure to meet the activity requirement will reduce a bidder's eligibility for future rounds.
Anonymous Bidding and Limited Public Info
The FCC proposes to keep certain bidder information (PEA selections, upfront payment amounts, bidding eligibility, and other bidding-related details) confidential until after bidding closes, and to publish only aggregate demand and prices after each round. Bidder-specific identities would be released only after the auction ends.
Identified Nationwide Providers for Communication Ban
For purposes of the rule that prohibits certain communications after the short-form filing deadline, the FCC proposes to identify AT&T, T‑Mobile, and Verizon as the named 'nationwide providers.' Applicants are then restricted from communicating bid strategies with these identified nationwide providers (and other applicants) until after the down payment deadline.
15‑Year Renewable License Term
Licenses awarded in Auction 115 will have 15-year renewable terms. Licensees may provide any terrestrial fixed or mobile services permitted under the modified Table of Frequency Allocations for 3.98–4.14 GHz.
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Key Dates
Department and Agencies
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