Analysis of AWS-3 Spectrum Results: Verizon Wins Big; Urban Capacity vs. Propagation
AWS-3 Auction Results:
Of the $3.57 billion total spent in the recent AWS-3 auction, $3.2 billion of it was accounted for by Verizon alone (bidding as Cellco Partnership). That bought it 82 of the 200 licenses on offer, with the price premium explained by a bias towards high value urban licenses. The remaining AWS-3 spectrum allocation was primarily secured by T-Mobile and, to a lesser extent, AT&T. SpaceX bid conservatively, indicating its recent spectrum acquisitions from Dish Networks will likely serve as supplementary capacity rather than signaling a shift to build a comprehensive, standalone terrestrial mobile network.
Here’s a breakdown of winning bids and assigned spectrum:
| Carrier | Licenses Won | Total Spend | Strategic Context |
|---|---|---|---|
| Verizon | 82 | $3.20 billion | Dominant bidder to acquire significant mid-band capacity. |
| T-Mobile | 102 | $278 million | Acquired the largest volume of licenses for rural and edge-market coverage. |
| AT&T | 10 | $121 million | Targeted smaller holdings to bolster localized network capacity. |
| SpaceX | 2 | $8.5 million | Acquired two regional licenses to complement supplemental coverage from space (SCS) initiatives. |
Here are the full results, published by the FCC:
“After years on the sidelines, FCC auctions are finally back,” said Chairman Brendan Carr. “Today’s successful auction generated billions of dollars in competitive bids to put spectrum to effective commercial use, and it bolsters competition in the wireless marketplace. We will carry this momentum forward as we prepare for the Upper C-Band auction in the year ahead.”
“Up to $3.3B of the auction’s proceeds will be used to cover amounts borrowed to support the FCC’s “rip and replace” program and other Commerce Department programs,” said the FCC press release. “The auction made available 200 spectrum licenses in the 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz bands which were subject to bid defaults or bid withdrawals in the 2014 auction and thus have remained unused in the FCC’s inventory since then.”
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Let’s examine how cellular network operators are navigating the fundamental physics of RF propagation:
As 5G networks transition from initial deployment to hyper-dense optimization, Auction 113 highlights a widening divergence in network architecture strategies: Verizon’s aggressive pursuit of premium urban capacity versus T-Mobile’s tactical rural densification.
[1.7 GHz / 2.1 GHz (AWS-3)] ---> Lower Path Loss, Better Indoor Penetration
[3.7 GHz (C-Band)] ---> Higher Path Loss, Requires High Node Density
- Free-Space Path Loss (FSPL): Operating at 1.7/2.1 GHz provides a significant propagation advantage over 3.7 GHz. According to the Friis transmission equation, signal attenuation increases with the square of the frequency. Moving from 3.7 GHz down to 1.7 GHz yields a theoretical path loss improvement of nearly 6 to 7 dB, drastically extending the effective cell radius.
- Building Penetration Indices: Higher-frequency C-band signals suffer from severe attenuation when interacting with concrete, low-E glass, and brick. AWS-3 signals possess longer wavelengths that penetrate urban building envelopes far more effectively, reducing the reliance on costly indoor small-cell deployments.
- Offloading the Core: Rather than burning valuable C-band capacity on edge-case indoor users with degraded Signal-to-Interference-plus-Noise Ratios (SINR), Verizon can utilize the AWS-3 layer to maintain robust, high-throughput indoor links, preserving the 3.7 GHz layer for line-of-sight macro capacity.
References:
https://www.telecoms.com/spectrum/verizon-was-the-big-spender-at-the-aws-3-spectrum-auction
https://www.fierce-network.com/wireless/verizon-emerges-biggest-winner-aws-3-auction
Federal Communications Commission, “Auction of Advanced Wireless Services (AWS-3) Licenses Closes; Winning Bidders Announced for Auction 113,” FCC Public Notice (DA-26-633), Jun. 26, 2026. Available: FCC Official Document Announcement
M. Alleven, “Verizon emerges as biggest winner in AWS-3 auction,” Fierce Network, Jun. 29, 2026. Available: Fierce Network Article
F. Rayal, “Big Carriers Get Selective: Lessons from the $3.57 Billion AWS-3 Auction 113,” Frank Rayal Telecom Insights, Jun. 28, 2026. Available: Frank Rayal Strategic Analysis
G. Winslow, “FCC Raises $3.5 Billion in AWS-3 Wireless Auction,” TV Tech, Jun. 24, 2026. Available: TV Technology Regulatory Report
Reuters, “U.S. spectrum auction raises $3.5 billion, will fund replacing Chinese telecom equipment,” Yahoo Finance, Jun. 23, 2026. Available: Yahoo Finance / Reuters Coverage
SatNews Publishers, “$3.57 Billion Milestone: FCC Advanced Wireless Services (AWS-3) Spectrum Auction Concludes,” SatNews Space & Satellite Media, Jun. 24, 2026. Available: SatNews Auction Summary
Morningstar Equity Research, “US Telecom: Verizon Shells Out $3 Billion for Spectrum as SpaceX Treads Lightly,” Morningstar Investor, Jun. 29, 2026.
