The Federal Communications Commission (FCC) on Wednesday announced new rules for promoting the demand for millimeter wave spectrum for 5G — ahead of its 5G spectrum auction in 2019.
FCC will keep 2,400 megahertz spectrum in the combined Upper 37 GHz and 39 GHz bands which are the largest amount of contiguous spectrum available for wireless service in the millimeter wave bands, FCC said.

FCC said 47 GHz band provides an additional 1,000 megahertz of spectrum.

GSMA, a telecom industry association, said Americas could generate an additional GDP of $190 billion from 2020 to 2034 if the governments can allocate the right millimeter wave bands for 5G services.

FCC modifies the band plans for the Upper 37 GHz, 39 GHz, and 47 GHz bands from 200 megahertz blocks to 100 megahertz blocks to be licensed by Partial Economic Area, which will facilitate the simultaneous auction of licenses in the three bands.

FCC on November 14 said it will commence its first-ever 5G spectrum auction for selling airwaves in the 28 GHz band and the 24 GHz band. FCC has made 1.55 gigahertz of spectrum available through these two auctions.

FCC today said it will conduct an incentive auction mechanism that will offer contiguous blocks of spectrum throughout the Upper 37 GHz, 39 GHz, and 47 GHz bands, while preserving spectrum usage rights for existing licensees.

FCC said the incentive auction of these spectrum bands will have two phases: a clock phase in which bidders may bid on generic license blocks, and an assignment phase in which clock phase winners may bid on specific frequencies.

New entrants and participating incumbents may bid for new licenses. Incumbents that bid for new licenses may use vouchers equivalent to their existing holdings for credit toward the amount they bid in the auction.

With today’s action, the Commission promotes the robust use of this spectrum for 5G and other innovative services by both incumbents and new licensees, and it takes an important step toward an auction of these bands in 2019, FCC said.