FCC Proposes Auctioning 25MHz for Satellite D2D and Mobile Services

The US Federal Communications Commission has proposed auctioning 25MHz of spectrum for satellite direct-to-device (D2D) services and terrestrial wireless networks, opening the 1675-1695 MHz and 2020-2025 MHz bands to commercial use.

All three commissioners unanimously backed the Notice of Proposed Rulemaking (NPRM). The agency said the spectrum would help meet growing demand for D2D connectivity alongside traditional mobile services.

The proposal forms part of a broader effort by President Donald Trump's administration to clear up to 400MHz of spectrum for commercial use by 2028. That target gives the FCC a hard deadline, roughly three years out, for repurposing federal and other holdings across multiple bands.

How valuable is the spectrum?

FCC chair Brendan Carr set expectations high for the auction's proceeds. "We expect big interest in this seemingly modest amount of spectrum, indeed, similar D2D bands are selling for tens of billions of dollars on the secondary market today," Carr said. "Today's proposal is a strong start."

The comparison matters for operators and satellite operators alike. If comparable D2D band sales reach tens of billions of dollars on secondary markets, even a 25MHz slice could attract serious bidding from established players and new entrants.

The move follows the AWS-3 spectrum auction, which raised $3.5 billion for the US Treasury. A further 160MHz of upper C-band spectrum is due to be auctioned by July 2027 under rules the FCC has already adopted.

What does the second NPRM change?

In a separate rulemaking, the FCC proposed updating D2D licensing rules and sought public comment on opening nearly 482MHz across eight additional frequency bands for satellite-to-phone coverage.

The proposed changes would remove geographic restrictions on spectrum leasing and routine waiver requirements. The FCC also proposed updating technical standards and performance rules for networks combining terrestrial and satellite coverage — a framework that directly affects how hybrid operators design and certify their networks.

The rules advance reallocating portions of the 1675-1695 MHz band for non-federal fixed and mobile services. Mobile satellite services would receive secondary allocations in that band to provide supplemental coverage from space, meaning satellite operators can offer service there but must accept interference protections for primary users.

Carr framed the package as a milestone for the commission's satellite work. "With today's proposal, we take our most comprehensive step yet to modernise the FCC's rules for direct-to-device," he said.

Who benefits?

SpaceX and Amazon Leo are both developing planned D2D services and could benefit from the FCC's proposals. For these companies, additional licensed spectrum and streamlined leasing rules reduce both the cost and the regulatory friction of building satellite-to-phone networks at national scale.

SpaceX has previously indicated plans involving as many as 80,000 US cell sites for its Starlink mobile service, while Amazon Leo is preparing thousands of satellites for its own D2D plan — both efforts depend on exactly the kind of spectrum access the FCC is now proposing.

Drone rules also adopted

Separately, the commission adopted final rules removing a restriction on drone operations in the 800MHz cellular band. Carr said the change would make spectrum available for commercial and defence uses.

The commissioners unanimously approved both the D2D rulemaking and the final drone rules, signalling bipartisan support for the commission's current spectrum agenda.

What comes next?

The NPRMs now enter a public comment period before final rules are adopted and auction procedures are set. With the administration's 400MHz target looming in 2028 and the upper C-band auction scheduled by July 2027, the FCC has committed itself to a dense pipeline of spectrum activity over the next three years.

For practitioners, the immediate tasks are clear: file comments on the eight candidate D2D bands, model the value of 25MHz against secondary-market benchmarks, and prepare for leasing rules that could reshape how terrestrial and satellite operators share capacity.