R48534 — Advanced Wireless Services (AWS-3) Spectrum: Issues for Congress

Radio spectrum refers to the range of radio frequencies used to enable wireless communications. Technologies such as smartphones, Wi-Fi routers, radionavigation systems on ships, military radar systems, and police radios rely on radio frequencies to transmit and receive communications. Technologies are built to transmit communications on certain frequencies, under specific rules to ensure transmissions from one device do not interfere with the transmissions of another device. As such, spectrum access and use are typically regulated. In the United States, the National Telecommunications and Information Administration (NTIA) manages federal spectrum use and the Federal Communications Commission (FCC) manages nonfederal spectrum use (e.g., commercial and state and local use). As adoption of smartphones was increasing, Congress passed and the president signed the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96), which named several spectrum bands for reallocation from federal to nonfederal use and directed the FCC to work with NTIA to reallocate those bands for mobile broadband use. Among the bands identified were the Advanced Wireless Services (AWS-3) band, which includes the bands with frequencies from 1695-1710 megahertz (MHz), 1755-1780 MHz, and 2155-2180 MHz. The FCC auctioned the AWS-3 band in 2015. In total, 70 bidders qualified, and some of these bidders were eligible for small business bidding credits (i.e., discounts on bids). After the auction, several other bidders challenged two bidders’ small business status and rights to bidding credits. Upon review, the FCC found that the two entities were under de facto control by DISH Network Corporation and denied their small business status and bidding credits. The two entities, which had won over 700 of the 1,611 licenses awarded, paid for some licenses but selectively defaulted on 197 others that were returned to the FCC. The two entities challenged the FCC decision on their small business status in court. The D.C. Circuit rejected the entities’ challenge in 2022 and the U.S. Supreme Court denied review in June 2023. Under FCC rules, winning bidders that default are liable for any difference between their winning bid and the amount of the winning bid the next time licenses for the same spectrum are auctioned, plus a penalty payment. The FCC’s general auction authority expired on March 9, 2023; the licenses could not be auctioned and thus remained in the FCC’s inventory. In the Servicemember Quality of Life Improvement and National Defense Authorization Act for Fiscal Year 2025 (P.L. 118-159, Title LIV), enacted December 23, 2024, the FCC was directed to initiate an auction of the available AWS-3 frequencies within 18 months of enactment (i.e., by June 23, 2026). The FCC was also authorized to borrow from the Treasury $3.08 billion for the Secure and Trusted Communications Networks Reimbursement Program (also called “rip-and-replace”)—a program to remove certain China-made equipment from U.S. communication networks; the Secretary of Commerce was authorized to borrow up to $220 million for regional technology hubs. Per P.L. 118-159, AWS-3 auction proceeds would be used to reimburse the Treasury for funds borrowed. P.L. 118-159 specified any remaining amount up to $280 million after reimbursing the Treasury is to be made available to the Secretary of Commerce for regional technology hubs; any remaining funds after that are to be deposited in the general fund of the Treasury and used for deficit reduction. On February 27, 2025, the FCC proposed rules for auctioning the remaining AWS-3 frequencies, including new rules on bidding credits for small businesses and rural service providers, and creation of a tribal licensing window, which allows tribes to obtain spectrum licenses prior to the auction, without bidding. Small businesses and tribal entities said these provisions could “level the playing field” for small bidders, prevent consolidation of spectrum with a few large service providers, and expand services in rural and tribal areas. Others, including large wireless service providers, said a tribal window could affect the auction timing and proceeds, including directives in P.L. 118-159 to repay the $3.08 billion in borrowed funds, and argued that the FCC lacks authority to create a tribal window. EchoStar, which acquired DISH and is responsible for the difference between the winning bid and new bid, argued that the FCC should keep the same rules used for the first auction to ensure a wide bidding pool and competitive bidding. On July 24, 2025, the FCC adopted final rules for the auction, denying a tribal window and keeping the small business credits as proposed in February 2025. The FCC set an auction start date of June 2, 2026. EchoStar challenged the FCC bidding credits rules in court; the two parties are negotiating to resolve the issues. Congress may monitor the AWS-3 auction to ensure it begins by the mandated timeline and proceeds can repay the borrowed funds. Congress may also be interested in the AWS-3 auction as it may serve as a bellwether for future auctions, including those authorized under the FY2025 reconciliation act (P.L. 119-21), which are expected to generate $85 billion in offsetting receipts. For these and future auctions, Congress could specify auction terms (e.g., tribal window, bidding credits, allocation of proceeds) or may defer to the FCC on auction terms—either of which could affect auction proceeds.

Curated by CRS — every bill listed in this report's relatedMaterials. Edge type cited_in_report, gold confidence.

• S 2238 — PART Act · 119th Cong
• HR 651 — Spectrum Pipeline Act of 2025 · 119th Cong
• HR 3430 — Spectrum Relocation Enhancement Act · 118th Cong
• HR 1677 — SMART Spectrum Act · 118th Cong