02 July 2026
Four learnings from the US AWS-3 auction
The FCC’s Auction 113 for AWS-3 spectrum concluded on 23 June after 72 rounds of bidding. All 200 licences across the 1695–1710MHz, 1755–1780MHz and 2155–2180MHz bands were sold, raising USD3.57bn from seven winning bidders. Below are the results:
The auction results highlight four notable insights:
Verizon dominated the auction
Verizon dominated Auction 113, spending USD3.16bn, almost 89% of total auction proceeds, despite acquiring only 82 of the 200 licences. Rather than seeking the largest number of licences, Verizon targeted the highest-value AWS-3 spectrum in major markets. It acquired the six most expensive licences in New York, Chicago, Charlotte, Honolulu and Tampa, which together accounted for USD2.1bn (representing 59% of the total auction spend).
This outcome is consistent with Verizon’s comparatively limited holdings of low and lower mid band spectrum compared to its peers, which likely increased its need to strengthen its portfolio. By contrast, T-Mobile acquired more licences (102) but largely in lower-value markets, while AT&T adopted a more selective approach following its acquisition of EchoStar spectrum.
Prices exceeded those in the 2014/15 AWS-3 auction
Along with others in the industry, we have previously highlighted the global trend in falling spectrum prices across many markets. However, Auction 113 concluded at an average price of USD2.53/MHz/pop, approximately 24% higher than the USD2.03/MHz/pop achieved in the original AWS-3 auction (Auction 97) in 2014/15, which was already one of the most expensive US auctions.
Auction 113 does not necessarily indicate a reversal of the broader trend of falling spectrum prices. One important factor that led to the high prices in this auction was EchoStar’s bidding strategy (see below), which appeared to be focused on ensuring the spectrum did not sell at lower prices than Auction 97.
EchoStar’s price driving strategy
Most of the spectrum available in the auction was originally won in the 2014/15 AWS-3 auction (Auction 97) by Dish-backed entities Northstar Wireless and SNR Wireless. The FCC later ruled that those entities were under Dish’s de facto control, and therefore not eligible for the small-business bidding credits they had claimed. Dish therefore decided to return 197 of the 702 licences that it had won in the auction.
However, EchoStar remained liable for a maximum shortfall of approximately USD2.9bn, with proceeds from Auction 113 offsetting this exposure. This created a strong incentive for EchoStar to ensure that aggregate auction revenues exceeded this threshold.
As shown below, EchoStar bid aggressively until Round 48, at which point it dramatically reduced its demand, once total aggregate bids exceeded USD2.9bn. After this round, the level of price increases reduced significantly, as EchoStar’s demand stopped price increases in several high value regions.
SpaceX made its first auction appearance
SpaceX participated in its first spectrum auction, winning two licences for a combined USD8.5m. Almost the entire amount (USD8.4m) was related to the Cincinnati-Hamilton B1 licence, covering unpaired AWS-3 spectrum in the 1700–1710MHz band. This complements the unpaired AWS-3 spectrum that SpaceX is acquiring from EchoStar.
The auction outcome does not, by itself, indicate that SpaceX intends to establish a nationwide terrestrial mobile network. Nevertheless, further opportunities to acquire terrestrial spectrum are expected, including the anticipated upper C-band auction in 2027. Alternatively, should SpaceX pursue a broader terrestrial strategy, it may seek to acquire an existing operator rather than incrementally assemble a nationwide spectrum portfolio.
