FCC to vote on auction of 25MHz prime spectrum that could benefit Amazon, SpaceX

• The FCC will auction 25MHz of spectrum specifically for D2D services and consider opening 482MHz more for supplemental satellite coverage
• Amazon requested approval in July to launch up to 5,105 satellites for D2D connectivity targeting underserved users, backed by over $11.5 billion in satellite internet investments
• The FCC's Space Bureau recently approved SpaceX's deployment of 15,000 satellites, marking a major expansion of next-generation satellite constellation capabilities

FCC to Auction Prime Spectrum for Satellite-to-Phone Services

The Federal Communications Commission announced it will vote on October 29 to auction 25 megahertz of prime spectrum to support direct-to-device (D2D) services enabling satellite-to-smartphone connectivity. The proposal also includes plans to make an additional 482MHz of spectrum available for supplemental space-based coverage and modernize FCC rules governing D2D services in licensed spectrum.

Key Beneficiaries:

The proposals are expected to benefit SpaceX and Amazon, both actively expanding satellite network capabilities for D2D services. In July, Amazon requested FCC approval to launch up to 5,105 satellites for a constellation targeting underserved wireless users. The company reinforced its satellite internet ambitions in August with an $11.5 billion investment in its Leo satellite internet business.

SpaceX also received regulatory progress, with the FCC's Space Bureau recently authorizing 15,000 satellites on Tuesday, supporting what the FCC called "a major win for the American space economy."

Additional Measures:

A third proposal eliminates outdated restrictions preventing drone operations in the 800 MHz Cellular band, aligning with the administration's push for "drone dominance" to support commercial and defense innovations.

Market Implications:

The spectrum auction and regulatory modernization could accelerate the elimination of cellular dead zones and expand connectivity to underserved markets. This positions SpaceX and Amazon to capture significant market share in next-generation satellite communications, potentially disrupting traditional wireless providers. The moves support broader infrastructure development in the emerging space economy and commercial drone sectors, creating new revenue opportunities in satellite-based telecommunications.