FCC Releases Auction 108 Procedures – Bidding To Commence On July 29, 2022

March 21, 2022 – The FCC has released a Public Notice announcing the procedures to be used for Auction 108, which will make available approximately 8,000 new flexible-use, county-based overlay licenses in the 2.5 GHz band (2496–2690 MHz).[1]

The licenses cover areas with unassigned 2.5 GHz spectrum, which are mostly rural parts of the U.S. The Auction 108 Short-Form Application (FCC Form 175) filing window opens on April 27, 2022, at 12:00 p.m. ET and closes on May 10, 2022, at 6:00 p.m. ET. Upfront payments (via wire transfer) are due on June 23, 2022, at 6:00 p.m. ET. Other key details of Auction 108 include the following:

Start Date: Bidding in Auction 108 is scheduled to being on July 29, 2022.

Auction Type: Auction 108 will be conducted using an ascending clock auction with a supply of one in each category of frequency-specific channel blocks.

Short-Form Filing Window: The Auction 108 Short-Form Application (FCC Form 175) filing window opens on April 27, 2022, at 12:00 p.m. ET and closes on May 10, 2022, at 6:00 p.m. ET.

Auction 108 Bidding Tutorial: The Auction 108 bidding tutorial will be available online no later than July 13, 2022.

Mock Auction: The Auction 108 mock auction is scheduled for July 26-27, 2022.

Upfront Payment Deadline: Upfront payments (via wire transfer) are due on June 23, 2022, at 6:00 p.m. ET.

Licenses: Auction 108 will offer geographic overlay licenses for unassigned spectrum in the 2.5 GHz (2496–2690 MHz) band.

Authorized Operations: The FCC has authorized both terrestrial fixed and mobile operations in the 2.5 GHz band.

Total Spectrum: 117.5 megahertz

Spectrum Blocks: Auction 108 will offer up to three blocks of spectrum – 49.5 megahertz, 50.5 megahertz, and 17.5 megahertz blocks, respectively – licensed on a county basis.

Channel Blocks: The first channel block will include channels A1–A3, B1–B3, C1–C3 (49.5 megahertz); the second channel block will include channels D1–D3, the J channels, and channels A4, B4, C4, D4, E4, F4 and G4 (50.5 megahertz); and the third channel block will include channels G1–G3 and the relevant K channels (16.5 megahertz of contiguous spectrum and 1 megahertz of the K channels associated with the G channel group, for a total of 17.5 megahertz).

License Term: New overlay licenses in the EBS portion of the 2.5 GHz band will be issued for 10-year, renewable license terms.

Small Business Bidding Credit: A bidder that qualifies as a “small business” – i.e., one with attributed average annual gross revenues that do not exceed $55 million for the preceding five years – to is eligible to receive a 15% discount on its overall payment. A bidder that qualifies as a “very small business” – i.e., one with attributed average annual gross revenues that do not exceed $20 million for the preceding five years – is eligible to receive a 25% discount on its overall payment.

Rural Service Provider Bidding Credit: An eligible applicant may request a 15% discount on its overall payment using a rural service provider bidding credit. To be eligible for a rural service provider bidding credit, an applicant must: (1) be a service provider that is in the business of providing commercial communications services and, together with its controlling interests, affiliates, and the affiliates of its controlling interests, has fewer than 250,000 combined wireless, wireline, broadband, and cable subscribers; and (2) serve predominantly rural areas. Rural areas are defined as counties with a population density of 100 or fewer persons per square mile.

Caps On Bidding Credits: There is a $25 million cap on the total bidding credit discount that may be awarded to an eligible small business, and a $10 million cap on the total bidding credit discount that may be awarded to an eligible rural service provider. Additionally, no winning designated entity bidder may receive more than $10 million in bidding credit discounts in total for licenses won in counties located within any partial economic area (PEA) with a population of 500,000 or less.

Tribal Lands Bidding Credit: A winning bidder that intends to use its licenses to deploy facilities and provide services to qualifying Tribal lands that have a wireline penetration rate equal to or below 85% is eligible to receive a Tribal lands bidding credit. A winning bidder must apply for a Tribal lands bidding credit after the auction when it files its FCC Form 601 post auction application. For additional information on the Tribal lands bidding credit, including how the amount of the credit is calculated, applicants should review the FCC’s rulemaking proceeding regarding Tribal lands bidding credits and related public notices.

Additionally, the FCC’s Wireless Telecommunications Bureau has released an Auction 108 mapping tool that can be used to help assess whether and to what extent there is unassigned 2.5 GHz spectrum available in any U.S. county. However, the maps and data displayed in the tool are not an official representation of license or application status. Potential Auction 108 applicants are encouraged to consult the FCC’s Universal Licensing System (ULS) to confirm the status of any license or application for particular areas. The mapping tool, as well as instructions for its use, can be found under the “Education” tab on the FCC’s Auction 108 website at www.fcc.gov/auction/108.

**********

[1] Auction Of Flexible-Use Licenses In The 2.5 GHz Band For Next-Generation Wireless Services; Notice And Filing Requirements, Minimum Opening Bids, Upfront Payments, And Other Procedures For Auction 108; Bidding Scheduled To Begin July 29, 2022; AU Docket No. 20-429, Public Notice, FCC 22-24 (Mar. 21, 2022), https://docs.fcc.gov/public/attachments/FCC-22-24A1.pdf.