FCC Changes Direction on 5G License Areas

The Federal Communications Commission released additional details on proposed plans to open up an unprecedented amount of spectrum for 5G wireless networks. The commission expects to vote in July on the plans, which are quite similar to what was proposed late in 2015, except with regard to the size of spectrum blocks to be auctioned and with regard to 5G license areas. 2015’s proposal called for three different high-frequency spectrum bands in the millimeter wave range to be auctioned on a county-by-county basis, but current plans call for county-size licenses for only one of the bands. If the proposed plan is adopted, licenses for the other two spectrum bands will be based on partial economic areas (PEAs). While there are more than 3,000 counties in the US, there are just over 400 PEAs – and PEA license areas are larger than some smaller network operators will be willing or able to bid on.

It is not clear why the FCC moved away from this direction for two of the three 5G spectrum bands, but it likely was at the urging of larger national carriers, who generally favor larger license areas. Perhaps the topic will be discussed at July’s FCC meeting, at which the commission is expected to vote on the 5G spectrum proposal. It’s important to note, though, that although the current plan is different from what was originally anticipated, it still calls for a large amount of spectrum – two 425 MHz blocks — to be licensed on a county basis.