As the nation closes the chapter on 2024, and a new Congress begins formulating its plans for the year ahead, it should use this opportunity to prioritize restoring the Federal Communications Commission (FCC) auction authority and building a robust pipeline of licensed spectrum—both critical to powering American networks and unlocking consumer benefits. Accomplishing these tasks would help close the digital divide, encourage future industry investment and innovation, and ensure that America continues to be an international leader in modern communications.
A great way for Congress to get the ball rolling is to first renew the FCC’s auctioning authority, which was shockingly allowed to lapse last year for the first time in history. Since then, no legislative proposal to permanently restore it has been successful. While Congress did recently pass an unrelated defense bill that allows for a one-time-only reauction of AWS-3 spectrum bands suitable for wireless use, this is insufficient. That is a shame because auction authority gives the Commission the power to host spectrum auctions, which serve several important functions.
First, auctions give commercial providers a regular opportunity to bid on exclusive access to specific radio frequencies—also known as licensed spectrum—upon which modern wireless networks operate. Without them, providers will struggle to obtain the spectrum they need to meet consumers’ seemingly unsatisfiable appetite for more data. This data powers the wide range of smartphones and other connected devices they have come to know and love and rely on for everything from basic communication and entertainment to online shopping and gaming.
Second, spectrum auctions generate significant revenue for the U.S. Treasury that can be used to meet a variety of government needs, such as paying down debt, and funding programs and services like next-generation 911 services and the now-defunct Affordable Connectivity Program. Since acquiring its auction authority in 1993, the FCC has held over 100 auctions that have generated more than $233 billion. With politicians always looking for new revenue streams, Congress should have restored the FCC spectrum auction authority long ago.
Recommended
Priority No. 2 for this incoming Congress should be passing legislation that creates a pipeline of licensed spectrum—preferably licensed mid-band spectrum—which possesses a unique combination of properties, such as high carrying capacity and stable coverage, that make it perfect for 5G networks.
For years, researchers have been sounding the alarm that the nation faces a looming spectrum shortfall if nothing is done to shore up supply. For instance, a report published at the end of 2023 by Brattle Group found that over the next five years, data traffic will jump 250 percent, and by 2027, the U.S. could face a spectrum deficit of almost 400 Megahertz (MHz). Such a deficit could overload networks, result in slower speeds during peak times, and an overall worse customer experience. For that reason, Congress must not only restore the FCC’s auctioning authority, but also take steps to free up more spectrum for licensed use so that the Commission has something to auction once its authority is restored.
There are already some encouraging signs that Congress is taking both issues seriously. For instance, last year Senator Ted Cruz (R-TX) introduced legislation that would restore the Commission’s auctioning authority and establish a robust spectrum pipeline. While that bill was not acted upon, the fact that Cruz is now poised to ascend to the top of Senate leadership means similar bills could receive priority in the future. Indeed, Cruz has already signaled interest in tackling several unrelated telecom matters, which bodes well for a second attempt at reauthorization and pipeline building.
Separately, Congress might find an ally in the incoming administration. While it is true that the Biden administration has previously expressed support for building a spectrum pipeline, it has taken no concrete steps beyond promising to study several spectrum bands for repurposing. Meanwhile, between 2017 and 2022, the Trump administration freed up more than 6,000 MHz of spectrum for licensed commercial use. Combined with new and expected leadership changes at key federal regulatory agencies, there is no reason to think Congress cannot find the necessary support to restore the FCC’s auction authority and build a spectrum pipeline.
Congress must not delay. Time is of the essence, and America is watching.
Nate Scherer is a policy analyst with the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, visit us at www.TheAmericanConsumer.Org or follow us on X @ConsumerPal
Join the conversation as a VIP Member