US approves plan to pay satellite companies US$9.7 billion to give up airwaves for 5G expansion
- The Federal Communications Commission will auction off the airwaves to US mobile network operators including Verizon, AT&T and T-Mobile
- The initiative is expected to help the US beat China in the race to build a vast 5G mobile infrastructure
US regulators approved a plan to pay Intelsat and other satellite providers to give up airwaves so they can be redeployed for the ultra-fast 5G mobile networks being rolled out.
The Federal Communications Commission (FCC) on a 3-2 vote on Friday approved chairman Ajit Pai’s plan for as much as US$9.7 billion to clear the frequencies, with the money coming from bidders expected to include large mobile network operators such as Verizon Communications.
The action “will help deliver 5G services to consumers across our country and promote our global leadership”, said Pai.
The satellite companies use the spectrum to beam television and radio programmes to stations, but said they can give up part of it while still serving customers on frequencies they retain, in part because they would use new satellites to carry data.
The FCC will sell the airwaves at a public auction. Pai earlier proposed that Intelsat get as much as US$4.85 billion for clearing airwaves quickly. The FCC in its vote did not say if that figure had changed.
