The Federal Communications Commission has opened bidding in its AWS-3 spectrum auction, the first sale of new mid-band licences in the United States in four years.

The auction marks the end of a prolonged gap in the FCC's spectrum pipeline. The regulator last sold mid-band airwaves in early 2021, when Auction 107 — the C-band sale — raised more than $80 billion. Since then, the agency has lacked auction authority for a period, and Congress only restored it in legislation passed in 2024 that also mandated the sale of recovered AWS-3 licences.

The AWS-3 band — frequencies around 1755–1780 MHz paired with 2155–2180 MHz — sits in the lower mid-band range that US carriers value for 5G because it balances coverage with capacity. The licences on offer largely come from spectrum returned or reassigned after the original AWS-3 auction of 2014–2015, which raised roughly $45 billion, including incentives payments, and was dominated at the time by AT&T and Dish Network's designated entities.

For US mobile operators, the sale offers a first chance since the C-band auction to acquire nationwide-capable mid-band holdings. Carriers have repeatedly warned that their existing mid-band assignments are filling up as 5G traffic grows, and industry groups have pressed Washington for years to release more spectrum across both mid-band and upper bands.

The FCC has structured the sale as a standard ascending-clock auction, with bidding conducted anonymously through the commission's automated system under standard anti-collusion rules that bar participants from discussing bids with rivals during the auction.

Interest is expected from the three national carriers — Verizon, AT&T and T-Mobile — as well as smaller providers and potential new entrants, though the FCC does not disclose the bidder list until after the auction closes. Analysts expect the total raised to fall well short of the C-band record, given the smaller amount of spectrum involved and its partial, fragmented nature compared with a clean nationwide block.

The auction also carries policy weight beyond the dollar total. Under the 2024 spectrum legislation, proceeds help fund the replacement of Chinese-made equipment from US networks under the "rip and replace" programme, which reimburses smaller rural carriers for swapping out Huawei and ZTE gear. The FCC has said the reimbursements outran the original congressional allocation, making auction revenue a practical necessity for completing the mandate.

A second sale mandated by the same legislation — an auction of upper mid-band spectrum in the 3.45 GHz range already partially licensed — and further pipeline decisions remain on the FCC's agenda, with the commission expected to schedule additional auctions once the AWS-3 bidding concludes and licences are granted.