The complex story behind T-Mobile’s spectrum struggles

T-Mobile won thousands of additional 2.5GHz spectrum licenses around the US in an FCC auction that ended roughly one year ago. But based on new commentary from the FCC, there’s no telling when the company will actually be able to put those licenses into action.

In a new letter to two top senators, FCC Chairwoman Jessica Rosenworcel warned that the agency would face “criminal penalties” if it actually gave T-Mobile its 2.5GHz license winnings. She explained that the FCC’s “auction authority” expired in March and so far has not been renewed by Congress, which means the agency no longer has the regulatory authority to issue spectrum licenses.

“It is imperative that Congress renew the commission’s spectrum auction authority as soon as possible,” she wrote.

But this 2.5GHz dustup isn’t the only issue affecting T-Mobile’s overall spectrum strategy. The company is also enmeshed in an increasingly litigious fight with investment company WCO, and it’s battling Dish Network over the fate of some of its 800MHz licenses.

Further, looming over the entire situation is a highly anticipated report from the NTIA that could ultimately have a massive impact on the future of T-Mobile’s 5G network, as well as the networks of its rivals.

In fact, it’s that NTIA report – which could be released this month – that may help the FCC regain its auction authority.

Licenses in limbo

The FCC’s Auction 108 of 2.5GHz spectrum licenses ended last year. T-Mobile spent $304 million in the auction, winning 90% of all the licenses sold, or 7,156 of the 7,872 total licenses that received winning bids.

However, the FCC lost its congressional auction authority to administer spectrum licenses amid a Washington, DC, battle over the future of the 3.1GHz-3.45GHz spectrum band. As a result, T-Mobile’s Auction 108 winnings have been stuck in limbo for months amid congressional crossfire.

“While we wait for Congress to act, Americans are losing out on enhanced 5G broadband and economic development opportunities,” wrote T-Mobile’s Ulf Ewaldsson, the company’s new networking chief, in a post to the company’s website last week. “While our competitors [like Verizon] are deploying their midband spectrum assets, consumers are denied the immediate impact of T-Mobile doing the same with additional bandwidth at 2.5GHz. That’s not good for competition.”

In her new letter to Senators Ted Cruz and John Thune, the FCC’s chairwoman said that Section 309 of the Communications Act “explicitly states that the Commission’s authority to ‘grant a license or permit’ for any spectrum that is auctioned ‘shall expire March 9, 2023.’ This provision is straightforward.”

Rosenworcel’s letter was a response to calls from Cruz and Thune to release T-Mobile’s 2.5GHz auction winnings. Her message: It’s not up to me, it’s up to you.

Awaiting the NTIA’s report

One reason Congress hasn’t renewed the FCC’s auction authority is because of an ongoing debate in Washington, DC, over the fate of the 3.1GHz-3.45GHz spectrum band. The US military currently runs radar and other operations in the 3.1GHz-3.45GHz band, but the wireless industry wants to get access to the band for 5G.

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