The U.S. Federal Communications Commission (FCC) is preparing to vote on a proposal to auction 160 megahertz (MHz) of upper C-band spectrum, a move that would require satellite operators to clear frequencies by deploying new satellites and upgrading ground infrastructure.
The proposal covers spectrum between 3.98 GHz and 4.14 GHz and is scheduled for a commission vote on July 22, following publication of the draft order on July 1.
If approved, the newly released spectrum would combine with frequencies cleared during the FCC’s earlier C-band proceeding to create a total of 440 MHz available for advanced wireless services.
Satellite Operators Face New Relocation Effort
The planned auction would follow a similar framework to the FCC’s first C-band clearing, launched in 2020, under which satellite operators received reimbursement for relocation costs as well as incentive payments for accelerating the process.
The FCC said the new incentives will be smaller overall than those awarded during the first auction but broadly proportional to the reduced amount of spectrum being cleared. Specific funding details are expected to be released after the commission’s vote.
FCC Chairman Brendan Carr said the additional spectrum is intended to strengthen U.S. wireless infrastructure.
“This sets America up to lead the world in next-generation connectivity, whether it’s 5G, 6G, or other forms of wireless services.”
Operators Estimate Billions in Upgrade Costs
Satellite operator SES has estimated that clearing the upper C-band will cost approximately $3.6 billion, with an additional $150 million allocated for contingencies.
According to the company, the transition would require five new hybrid Ku-band satellites, two in-orbit backup satellites and approximately $777 million worth of upgraded integrated receiver decoders (IRDs) to support ground stations and reduce rain-fade impacts.
Eutelsat has separately estimated that relocating its services from more than 130 MHz of the upper C-band would cost around $750 million.
Aviation Sector Also Affected
The spectrum transition will also require updates to aircraft radio altimeters to ensure compatibility with expanded 5G operations.
The Federal Aviation Administration (FAA) said it plans to issue a rule later this summer requiring upgrades to aircraft altimeters.
“The FAA will issue a rule later this summer to require aircraft altimeter upgrades to ensure altimeters can safely operate with signals from the 5G wireless signals that will be auctioned.”
Congress directed the FCC through legislation passed in 2025 to auction at least 100 MHz of upper C-band spectrum by July 2027 as part of broader efforts to expand spectrum available for next-generation wireless networks.
