Later this month the FCC is tentatively set to adopt updated designated entity eligibility requirements1 for the AWS-3 spectrum bands (1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz).2 The Commission is required to initiate Auction 113 by June 23, 2026, with auction proceeds supporting the Supply Chain Reimbursement Program by reimbursing eligible advanced communications service providers for their costs to remove, replace, and dispose of what the Commission deemed untrustworthy and insecure foreign equipment and services (such as Huawei Technologies Company or ZTE Corporation).

What the AWS-3 Order would do (unless modified prior to adoption by the FCC):

Define a small business as an entity that, together with its affiliates, its controlling interests and the affiliates of its controlling interests, has average gross revenues that are not more than $55 million for the preceding five years. (Not three years as with the prior AWS-3 Auction 97).

Define a very small business as an entity that, together with its affiliates, its controlling interests and the affiliates of its controlling interests, has average gross revenues that are not more than $20 million for the preceding five years. (Not three years as with the prior AWS-3 Auction 97).

Offer a 15% bidding credit to qualifying rural service providers.

Codify the Small Business Act’s benchmark requirements for determining a small business’s average gross revenues in the standardized schedule of bidding credits in the Commission’s part 1 rules such that eligibility for small business bidding credits would be based on an entity’s average gross revenues for the preceding five years.3

Decline to implement a Tribal priority licensing window in advance of the auction.

In the interim, should you have any questions concerning these auction matters, please do not hesitate to contact Dee Herman at [email protected].
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[1] https://www.fcc.gov/document/moving-closer-aws-3-spectrum-auction

[2] See License Inventory list Auction 113 Attachment A.

[3] However, the FCC has stated for fear of gamesmanship it declined to increase the bidding credit percentages for small and very small businesses and declined to include a 35% bidding credit for entities with not more than $4 million in average annual gross revenues.

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