New Upper C-band Auction Transition Requirements

The Federal Communications Commission has established a framework for repurposing Upper C-band spectrum for next-generation wireless services while protecting incumbent operations. The FCC has set the terms for an auction of new flexible-use licenses, requiring incumbent satellite and earth station operators—including those serving broadcasters and other content distributors—to complete an accelerated transition, and providing for reimbursement of reasonable relocation costs through an independent clearinghouse.

These new requirements impact wireless carriers, satellite companies, TV and radio broadcasters, earth station operators, equipment manufacturers, programmers, and other parties that use or rely on the band and potentially adjacent bands, including aircraft radio altimeters. There are varying compliance dates, with more deadlines to follow, but most of the rules take effect on September 29, 2026.

Consistent with the FCC’s Lower C-band auction, the FCC’s reimbursement process for the Upper C-band establishes that eligible incumbent earth station operators will not be required to bear the financial burden for clearing spectrum for new wireless operations. Under the FCC’s framework, winning wireless operators will fund reasonable relocation expenses through an independent clearinghouse. Satellite operators are required to submit their Transition Plans to the FCC by November 5, 2026.

The FCC will reconfigure 160 MHz of the Upper C-band for terrestrial wireless flexible use in the 3.98–4.14 GHz band segment, with a 20-megahertz guard band at 4.14-4.16 GHz. Incumbent Fixed Satellite Service (FSS) licensees will relocate out of 4.0–4.16 GHz. The FCC will reallocate much of the remaining Upper C-band from satellite use to terrestrial wireless broadband via an auction, with completion of competitive bidding by the July 4, 2027 statutory auction deadline.

Although the final Upper C-band transition deadline is not until June 30, 2031, all stakeholders should plan on developing their transition strategies now and well before the final transition dates to comply with the new requirements and to ensure that their potential expense and reimbursement interests are protected.

Transition Cost Reimbursements

The Order requires new Upper C-band terrestrial wireless operators to reimburse incumbent Upper C-band operators for all “reasonable and necessary” costs of clearing the existing FSS services. As was the case with the Lower C-band reimbursement process, incumbent earth station operators have the option of electing lump sum payments instead of developing a transition cost reimbursement plan. To facilitate lump sum reimbursements, the FCC is requiring the FCC’s Wireless Telecommunications Bureau (WTB) to release a Cost Catalog to provide FSS incumbents, earth station operators, and potential auction bidders, with the range of presumptively reasonable transition costs.

Unlike the Lower C-band proceeding, however, incumbent earth station operators will be allowed to make elections on a site-by-site basis as opposed to being required to make a single selection for all of a licensee’s facilities. The FCC will require a party that elects a lump sum payment to inform the FCC whether it will (i) perform its own transition work to maintain FSS service; (ii) migrate to an alternative distribution technology such as IP-delivered service; or (iii) discontinue service altogether. Once an election is made by an incumbent earth station operator, the election decision is irrevocable.

Transition Clearinghouse and FCC Oversight

Consistent with the framework used for the Lower C-band transition, the FCC will rely on an independent, third-party clearinghouse to administer the financial aspects of the Upper C-band transition. The clearinghouse’s principal responsibilities will include reviewing claims for reimbursement of actual transition costs and evaluating elections for lump sum payments. It also will determine and allocate each Upper C-band licensee’s share of the transition expenses, collect the required funds, and distribute approved payments to eligible claimants. The FCC’s WTB will oversee the clearinghouse and the transition-cost reimbursement program more broadly.

For incumbent earth station operators, the clearinghouse will serve as the primary point of contact for submitting and documenting reimbursement claims. Parties seeking reimbursement are strongly advised to keep detailed records supporting their expenses, follow the applicable filing procedures and deadlines, and be prepared to demonstrate that their costs are reasonable, necessary, and attributable to the Upper C-band transition. The FCC will release additional public guidance on the auction and transition clearinghouse oversight.

Transition of Incumbent Earth Station Operators

The FCC will place primary responsibility for managing the transition on satellite operators. Satellite operators will work with their customers to develop detailed “Transition Plans” describing how existing services will be relocated. Those plans must be filed with the FCC by November 5, 2026, at which time the WTB will open a separate docket. Consequently, broadcasters, MVPDs, and other stakeholders should begin communicating with their satellite provider now regarding plans, if they have not done so already. The plans should provide information regarding how individual programming services will be handled and whether particular services are expected to remain on C-band or migrate to a different distribution platform.

The reduction of Upper C-band spectrum will require substantial changes throughout the existing band. While the final clearing deadlines are not until 2030 and 2031, satellite operators will begin developing and implementing their transition strategies well before then, as should all stakeholders. Additional deadlines will be established as the FCC implements the Cost Catalog, reimbursement process, and lump-sum election and auction procedures.

For more information about the Upper C-band transition, contact Paul Cicelski in our Media Practice Group.