The FCC announced it will vote on auctioning 25MHz of prime spectrum to support direct-to-device satellite services, a proposal that could benefit SpaceX and Amazon as both companies race to expand satellite-based smartphone connectivity.
The Federal Communications Commission announced Wednesday it will vote on a proposal to auction 25 megahertz of "prime spectrum" to support direct-to-device satellite services, a move that could benefit companies including SpaceX and Amazon.
The FCC, in a press release, said it would also vote on October 29 on taking public comment on a separate proposal to make an additional 482MHz of spectrum available for supplemental coverage from space and to modernize its rules for direct-to-device services in licensed spectrum.
A third proposal included in Wednesday's announcement would eliminate what the FCC described as an outdated restriction barring drone operations in the 800 MHz Cellular band.
Both the 25MHz auction and the 482MHz supplemental coverage proposal could accelerate expansion efforts by SpaceX and Amazon, each of which has moved aggressively to build out direct-to-device satellite connectivity in recent months.
On Tuesday, the FCC's Space Bureau granted an application for SpaceX's new direct-to-cell system, authorizing a constellation of 15,000 satellites. "This constellation will use the spectrum SpaceX purchased from EchoStar earlier this year, which the FCC approved in a major win for the American space economy," the agency said in its Wednesday release.
Amazon has pursued a parallel path. In July, the company filed with the FCC for approval to launch up to 5,105 internet satellites as part of a constellation aimed at providing direct-to-device connectivity, stating in that filing it was targeting users "unserved or underserved" by existing wireless providers. The following month, Amazon announced it would acquire Globalstar in a deal worth more than $11.5 billion, a transaction intended to bolster its low-Earth orbit satellite internet operations.
FCC Chairman Brendan Carr framed the direct-to-device proposals in terms of consumer connectivity and national competitiveness. "The 'direct-to-device' proposals work to continue leveraging this cutting-edge tech to end cell phone dead zones and provide service directly from next-gen satellite constellations to your smartphone," Carr said in a statement Wednesday.
On the drone spectrum issue, Carr tied the regulatory change to a broader administration priority. "Our final rules on drones further President Trump's call for drone dominance, providing the emerging American drone economy with usable spectrum to support the next generation of commercial and defense innovations," he said.
The October 29 vote on opening public comment would set the stage for a longer rulemaking process before any additional spectrum in the 482MHz tranche is formally made available, underscoring that the larger allocation remains several regulatory steps away from implementation.
With SpaceX's direct-to-cell authorization now in hand and Amazon's Globalstar acquisition moving through its own approval process, the outcome of the 25MHz auction is likely to draw intense interest from both companies — and potentially from carriers and other satellite operators seeking a foothold in a rapidly expanding segment of the wireless market.
Marc Sabatini is a staff writer at TechEchelon covering enterprise software, cybersecurity, and the regulatory beats that shape both. He focuses on the deal flow and policy decisions that move markets.
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