FCC Rulemaking On Space Station Licensing And Spectrum Sharing In The Upper Microwave Bands

Highlights

• The Federal Communications Commission (FCC) on Oct. 28, 2025, adopted two Notices of Proposed Rulemaking (NPRM) that reflect the Commission's broader push to modernize its licensing framework and facilitate innovation in the rapidly expanding space economy.
• In the first, the FCC is proposing an overhaul of its long-standing Part 25 regulations in favor of new "Part 100" rules that would reshape the entire satellite licensing process and pave the way for novel systems that have struggled to navigate the traditional framework.
• The second proposes a more flexible use of spectrum in bands that serve both earth-based and space-based stations, with the goal of facilitating more efficient sharing of available spectrum specifically in the upper microwave bands.

The Federal Communications Commission (FCC) on Oct. 29, 2025, published "Space Modernization for the 21st Century," a Notice of Proposed Rulemaking (NPRM) aimed at modernizing the Commission's space and earth station licensing rules. This NPRM follows recent efforts by FCC leadership to streamline the licensing process for operators of space and earth stations. In early October 2025, FCC Chair Brendan Carr launched "Space Month," an initiative aimed at overhauling the agency's licensing and spectrum rules. The new rules would replace existing Part 25 rules with a new Part 100 titled "Space and Earth Station Services," with the intended goal of providing a clearer, more organized and flexible regulatory framework for licensing space and earth stations, including novel systems that do not fit within the current framework.

Space Modernization for the 21st Century

Licensing Assembly Line

The NPRM proposes a "licensing assembly line" to optimize and expedite space and earth station applications. This process would consist of three phases: 1) a modular application submission, where applicants will need only submit application portions relevant to their system type and licensing needs, 2) an application processing phase, where the FCC will review applications, seek public comment and request additional information where necessary, and 3) a final approval phase.

In order to expedite the licensing process for space and earth stations, the NPRM proposes that applications be placed on public notice for seven days and subsequently granted if certain criteria are met. An application will be eligible for the expedited processing pathway if the application meets "certain presumed acceptable criteria" that the FCC finds is in the public interest, does not request waivers and is not subject to limited exceptions.

Earth Station Licensing

Citing the dramatic increase in earth stations in recent years, the NPRM proposes a shift in its earth station licensing rules. The rule introduces a new earth station category for immovable earth stations and proposes a shift to a nationwide, non-site licensing approach. Immovable earth stations are defined as "earth station[s] licensed under either a Nationwide, Non-Site License or a single location authorization that is located at a single fixed location that must be registered and coordinated before operating." The proposed rule also seeks comment on whether the requirements of the earth station rules as they stand are unduly burdensome or otherwise duplicative. Additionally, the NPRM proposes expanding the license term for most earth stations – and space stations – to 20 years.

Reform of Surety Bond Requirements

For geosynchronous orbit (GSO) systems, the NPRM proposes to remove the surety bond requirement entirely. This is a significant change from the current Part 25 rules, which require GSO licensees to post a bond to ensure timely deployment and prevent hoarding of unused spectrum.

For non-geostationary orbit (NGSO) systems, the NPRM expands the class of systems exempt from the surety bond requirement, notably including small satellite systems and other systems eligible for expedited processing. While larger NGSO systems would be required to post a bond, the bond formula will decline as the licensee deploys satellites.

Variable Trajectory Spacecraft Systems Category for Novel Space Activities

The proposed rule also addresses licensing for novel systems that do not follow predictable trajectories, such as In-space Servicing, Assembly, and Manufacturing (ISAM) operations and lunar missions. The FCC previously sought to address licensing for ISAM missions in prior proceedings, the most recent of which was published in 2024. The new proposed rule acknowledges the 2024 ISAM proceedings and notes that its approaches overlap but states that the new approach is preferable. The 2024 ISAM proceedings proposed a distinct licensing framework for ISAM missions, with specific requirements and review processes tailored to servicing, assembly and manufacturing activities. Under the new rule, ISAM operators will be put in a broad Variable Trajectory Spacecraft System (VTSS) category designed to accommodate missions that do not follow predictable trajectories. Instead of prespecifying all activities over the license term, VTSS applicants can file propagated ephemeris and collision avoidance plans. The new rule maintains some application requirements proposed in the 2024 ISAM rule, such as International Telecommunications Union (ITU) filings, client spacecraft lists, and statements on proximity operations and orbital debris.

Facilitating More Intensive Use of Upper Microwave Spectrum

The FCC published another NPRM on Oct. 29, 2025, titled "Facilitating More Intensive Use of Upper Microwave Spectrum." The proposed restructuring focuses on the upper microwave spectrum bands above 24 gigahertz (GHz) currently shared between earth stations and space stations.

In 2016, the FCC adopted the Spectrum Frontiers Report and Order, which established a framework for the Upper Microwave Flexible Use Service (UMFUS) – a terrestrial service that uses ground-based transmitters and receivers to provide wireless service – that permitted both fixed and mobile operations in bands such as 27.5 to 28.35 GHz, 37.7 to 38.6 GHz and 38.6 to 40 GHz. The Report and Order defined certain circumstances under which individually licensed Fixed Satellite Service (FSS) earth stations (a satellite service that uses space stations to transmit and receive data from ground-based earth stations) could be used to conduct Earth-to-space operations pursuant to Section 25.136 of the Commission's Rules. Since the 2016 Report and Order, the FCC has expanded UMFUS to include additional bands, increasing the availability of spectrum to operators using them.

However, the most recent NPRM aims to provide more intensive and flexible use of spectrum in the 24 GHz, 28 GHz, upper 37 GHz, 39 GHz and 50 GHz bands. The NPRM outlines four key proposals to achieve its goals:

1. The FCC proposes a Light Licensing process, where earth-station siting and coordination rules are replaced with a streamlined registration process.
2. The NPRM considers and invites comment on allowing UMFUS licensees, and FSS operators to negotiate commercial agreements for shared spectrum use.
3. The NPRM seeks comment on raising or eliminating current limits on earth stations based on location, population and infrastructure concerns.
4. The NPRM seeks comment on allowing applicants to certify their compliance with FCC requirements up against certain criteria, as opposed to providing detailed technical showings.

The proposals contained in the NPRM would likely benefit satellite operators by providing easier earth station siting and reducing the regulatory burden across the board for applicants. Additionally, terrestrial licensees could see new opportunities for spectrum sharing.

Next Steps

Comments on both NPRMs are due 30 days after Federal Register publication; reply comments are due 60 days after publication. Stakeholders should assess the impact of proposed changes and consider submitting feedback. If you have any questions regarding these NPRMs or other FCC proceedings relating to commercial space activities, reach out to the authors or a member of Holland & Knight's Satellite and Space Technology Team.

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