Big Carriers Get Selective: Lessons from the $3.57 Billion AWS-3 Auction 113

By | June 28, 2026

FCC Auction 113 offered the remaining AWS-3 inventory, largely the former EchoStar holdings. What unfolded was not a broad land grab but a disciplined portfolio exercise. Verizon, T Mobile, and AT&T shaped the auction’s trajectory, driving $3.57 billion in proceeds over 72 rounds. Large markets cleared early; smaller markets carried the auction into its later stages.

CompanyNet Proceeds ($)% of ProceedsLicenses Won% of LicensesMHz-PoP (million)% MHz-PoP$/MHz-PoP
Verizon 3,162,445,000 88.5%8241% 1,120 79.2%2.82
T-Mobile 277,787,000 7.8%10251% 219 15.5%1.27
SpaceX 8,490,200 0.2%21.0% 24 1.7%0.35
Blue Ridge Wireless 1,567,500 0.0%10.5% 3 0.2%0.56
AT&T 120,774,000 3.4%105.0% 43 3.1%2.80
EchoStar 1,228,000 0.03%21.0% 4 0.3%0.31
Citizens Band 56,250 0.002%10.5% 0.5 0.0%0.11
Total 3,572,347,950 100% 200 100% 1,414 100%2.53

Verizon Sets the Tone

Verizon dominated the event. The carrier secured 79% of available MHz PoP and contributed 89% of total proceeds, winning 82 licenses — including 48 of the 57 large market assets. This was targeted acquisition, not opportunistic buying. Verizon focused on strategic capacity additions where network economics justified premium pricing.

T Mobile followed at a distance, spending $278 million for 102 licenses, mostly G block CMAs. These represent 15.5% of available MHz PoP and reflect a methodical approach to filling geographic gaps at attractive cost.

AT&T remained notably restrained. The carrier spent $120 million for 10 licenses (3.4% of MHz PoP), a posture shaped by its earlier EchoStar transactions that delivered substantial mid band and low band spectrum on negotiated terms.

SpaceX made its first auction appearance, acquiring two licenses: a TDD B1 license in Cincinnati and a G block license in the Gulf of Mexico — listed by the FCC as the Gulf of America.

CompanyA1B1GHIJTotal
Verizon511216382
T-Mobile91110102
SpaceX112
Blue Ridge Wireless11
AT&T8210
EchoStar112
Citizens Band11
Total1115214293200

A Shift from Scarcity to Strategy

AWS-3 Auction 113 unfolded in a new era of capital discipline. Major telecom operators had already completed heavy spending on CBRS, C-Band, and 3.45 GHz spectrum and built out much of their 5G networks. This environment of cost control stands in sharp contrast to the record-breaking auctions of recent years.

Operators entered this auction with clear knowledge of their portfolio gaps and precise targets. They did not chase spectrum for its own sake. Instead, they pursued licenses that strengthened existing network positions. Demand concentrated on specific assets rather than spreading broadly across the inventory. The auction produced solid proceeds without the indiscriminate accumulation that defined prior cycles.

Urban Premiums and Rural Grind

Round-by-round bidding data exposes two distinct layers of competition.

In high value BEA licenses (H, I, J blocks), bidding surged early and settled quickly. Markets such as New York, Chicago, and Boston saw intense initial interest. Verizon moved decisively, treating these licenses as strategic capacity layers where population density and network fit justified premium valuations.

Smaller CMA G-block licenses in secondary and rural markets told a different story. These assets produced the longest and most persistent bidding wars. Licenses in Sheboygan, WI, several Alabama counties, Yuma, Az, and Great Falls, MT remained contested for more than 55 rounds despite much lower absolute prices. Aggregate demand often reached 3-5 times supply. T Mobile showed particular intensity here, building contiguity and filling gaps at a fraction of Verizon’s cost. This is classic incremental coverage strategy: small pieces that complete a broader footprint.

AT&T took a notably restrained approach. Despite many AWS-3 assets complementing its existing holdings, the carrier won only 10 licenses for $120 million. This selectivity reflects the EchoStar spectrum deals AT&T completed earlier, which delivered substantial mid-band and low-band holdings on negotiated terms and reduced the need for aggressive bidding in this residual auction.

A More Mature Spectrum Market

This split reveals a more mature spectrum strategy shaped by the residual nature of the auction. Operators exercised capital discipline by paying top dollar only for assets that meaningfully advanced network quality or coverage. They fought hard on lower-value licenses only when those pieces completed a broader portfolio picture. The auction delivered meaningful proceeds without the irrational bidding of the past. RoI, deployment economics, and existing holdings drove decisions more than raw MHz-PoP counts.

Concluding Thoughts

AWS-3 Auction 113 highlights a maturing wireless industry. Spectrum remains a vital asset, yet operators now refuse to pay any price simply to expand their holdings. Capital allocation, network economics, and return on investment have taken center stage in spectrum decisions.
Does this auction mark an early turning point where scarcity-driven bidding gives way to a more disciplined market that prioritizes strategic fit over simple ownership? Or does it reflect a one-off dynamic created by the residual character of the licenses on offer? The answers will shape operator behavior in upcoming auctions, particularly the upper C-Band release that will bring fresh spectrum to the table.

Leave a Reply