FCC to Vote on Auctioning 25MHz of 'Prime Spectrum' in Move That Could Benefit Amazon, SpaceX

The Federal Communications Commission is set to vote on auctioning 25 megahertz of what has been described as prime wireless spectrum, in a move that could benefit companies including Amazon and SpaceX.

The auction comes as both SpaceX and Amazon have moved to expand their efforts to provide direct-to-device satellite services, connecting mobile phones and other devices directly to satellite networks without relying on traditional cell towers.

A competitive race for spectrum

Wireless spectrum is a limited public resource, and companies seeking to expand network coverage, including through emerging satellite-to-device technology, depend on gaining access to usable frequency bands through FCC auctions or other allocation processes. Spectrum considered especially valuable, often described in the industry as "prime," tends to combine favorable propagation characteristics with broad usability for data and voice services.

SpaceX, through its Starlink satellite network, and Amazon, through its Kuiper satellite project, have each been building out satellite constellations capable of supporting direct-to-device connectivity, a capability that depends in part on access to appropriate spectrum allocations to operate at scale.

An FCC vote to auction additional spectrum would open a formal process through which eligible bidders, potentially including satellite and wireless operators, could compete for rights to use the newly available frequencies.

The outcome of the auction, including which companies ultimately secure rights to the spectrum and under what conditions, will depend on the bidding process and any conditions the FCC attaches to the auction.