FCC proposes auction rule to speed up Huawei 5G replace scheme

FCC considers using a new auction spectrum rule to gear up the Huawei 5G rip-and-replace scheme. The Chairperson of the FCC – Jessica Rosenworcel has recently instructed her team to follow such rules that can help launch a spectrum auction.

Spectrum auction is a governmental process that offers or sells the rights to transmit signals over particular radio frequency bands to the highest bidder. It efficiently assigns scarce spectrum resources and can last from a day to several months.

Jessica believes that the spectrum auction rule will eventually help the FCC to rip and replace Huawei 5G and other China-made equipment from the US networks.

FCC Chairperson says:

“… we are acutely aware of the risk posed by Chinese hackers and intelligence services to our privacy, economy, and security. Today’s proposal is a critical step toward finally filling the shortfall in the Rip and Replace program.”

Inputs further reveal that the FCC will refer to the AWS-3 spectrum auction in this matter. AWS (Advanced Wireless Services) 3 is a 2015 auction of 65MHz. It carries 50MHz of paired spectrum and 15MHz of unpaired uplink spectrum.

AWS-3 resulted in a $44.9 billion record with bidders like Verizon, AT&T, T-Mobile US, and Dish Network. Initially, Chinese vendors like Huawei and ZTE also participated in the AWS-3 bidding.

But later, the US authorities kept around 1.9 billion aside from this spectrum for removing the Chinese network equipment and services from their cores.

However, the rip-and-replace scheme exceeded the $1.9 billion, demanding more funds. Details reveal that the Spectrum and Secure Technology and Innovation Act provided $3.08 billion to the FCC for funding the rip and replace program.

The fund will be given by the Treasury Department as a loan which will likely be repaid by the AWS-3 auction. Now FCC plans to back the auction proposal to pull out Huawei from the US 5G network cores. Jessica said:

“I am confident that the FCC’s world-leading and award-winning auction team will meet this important moment.”

FCC proposes auction rule to speed up Huawei 5G replace scheme (Image Credits: FCC)

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