FCC wraps up AWS-3 spectrum auction raising $3.5bn, eyes E-Rate program cut

The Federal Communications Commission closed its AWS-3 spectrum auction on June 26, 2026, raising more than $3.5 billion from 17 bidders. The proceeds will fund the removal of Chinese telecom equipment from U.S. networks, while the agency separately weighs eliminating the $2 billion E-Rate program for school and library internet.

The auction, designated Auction 113, ran for 72 rounds and sold 200 licenses in the 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz bands. These licenses had been idle since 2014 after Dish Network defaulted on payments. The FCC said up to $3.3 billion of the proceeds will repay borrowing for the "rip and replace" program targeting Huawei and ZTE gear.

E-Rate on the chopping block

While the spectrum sale expands commercial wireless capacity, FCC Chairman Brendan Carr has questioned whether the E-Rate program, established in 1996, remains necessary. The program provides $2 billion annually to connect schools and libraries to the internet. Carr argued that tablets and digital devices have distanced students from traditional learning methods such as "turning pages in books, penciling out answers to math problems."

Key facts about the two initiatives:

• E-Rate has funded Wi-Fi, cabling, and networking infrastructure for nearly 30 years.
• The FCC is considering eliminating the program entirely, with no timeline for a decision.
• The AWS-3 auction is the first FCC spectrum sale in four years after Congress restored auction authority last year.
• The Upper C-Band auction is required by Congress to be completed no later than July 2027.

Implications for U.S. connectivity

The two actions reflect divergent priorities: expanding commercial wireless while potentially reducing public access funding. Critics of the E-Rate cut warn that rural and low-income schools rely heavily on the subsidies. Supporters of the spectrum auction say it will boost 5G and mid-band capacity, benefiting consumers and competition. FCC Chair Carr noted that "more spectrum means lower prices and stronger competition."

The FCC plans to move forward with the Upper C-Band auction by mid-2027. Carr said the agency "will carry this momentum forward." Meanwhile, the fate of E-Rate remains uncertain, with no timeline for a final decision.