Before it expires next month, it’s critical that Congress reauthorizes the Federal Communications Commission’s (FCC) spectrum auction authority. Without this authority, access to the high-speed internet and wireless that is indispensable to businesses and consumers could be jeopardized. It is also clear that new spectrum should be made available from the current bandwidth that the federal government has monopolized for too long.
Spectrum auction authority refers to the FCC's statutory ability to manage, allocate, and reallocate various bandwidths of radio waves in the United States. At the advent of mobile device prominence, the FCC was granted the authority to assign radio spectrum licenses by Congress in 1993. This authority, which has never lapsed, is crucial in ensuring that the nation's spectrum resources are allocated properly to meet the growing demand for 5G. Furthermore, these auctions have generated over $230 billion in proceeds for the federal government.
As NTU has written in the past, winning in 5G is critical in competing with China. Widespread access to quality 5G service will allow businesses to remain competitive in a rapidly evolving technological landscape, as well as contribute to the growth of the economy. There are many technological advances such as cloud gaming, drone coordination, edge computing, fixed wireless broadband, and more which depend on spectrum availability. And as NTU has recently observed, fixed wireless will be crucial in efficiently and cost-effectively connecting more Americans for hard-to-reach populations under new federal broadband programs. The reauthorization of the FCC's spectrum authority is also important for consumers generally, as it ensures that they have access to high-quality and affordable wireless service. This includes access to fast and reliable internet speeds, which are essential for online activities such as streaming, teleworking, telemedicine, and education. However, much of the usable spectrum is held by government incumbents such as the U.S. Department of Defense.
Federal government incumbents occupy 12 times the amount of licensed spectrum nationally. While it is important to preserve some of the spectrum for defense and public safety, this is an extremely valuable resource and any excess spectrum should be repurposed so it can be used by consumers and private sector businesses to enhance economic growth. Right now, there are no scheduled spectrum auctions for the first time in many years. The last spectrum auction raked in over $80 billion in proceeds. At a time where the federal deficit is in full focus and economic activity is stagnating, it is clear that there is no worse time to slow down on unleashing a valuable resource to American businesses and consumers.
The reauthorization of the FCC's spectrum authority is essential for supporting businesses, 5G development, and consumers in the United States. Failing to compete with China on this front may lead to cascading consequences for the next generation of wireless as well, 6G.
Reauthorization of the FCC's spectrum authority will ensure stability, and coupled with the creation of a new spectrum pipeline, businesses and consumers will benefit from a major economic shot in the arm. NTU supported the bipartisan and bicameral House-passed Spectrum Innovation Act last Congress, and would likely support similar legislation moving forward.