The following statement may be attributed to Free State Foundation President Randolph May regarding the FCC's proposal for repurposing C-Band spectrum:
The FCC's proceeding looking to repurpose the C-Band is one of the most complex proceedings before the Commission, but surely one of the most important. The objective is to free up much needed valuable mid-band spectrum so that it is available for wireless operators to expand and enhance their networks to provide next-generation 5G services, while ensuring that incumbent providers in the band are able to continue to provide important services to cable operators and other video distributors with minimal disruption.
Importantly, there is widespread agreement that time is of the essence in repurposing the C-Band spectrum if the U.S. is not going to fall behind China and other countries in building out 5G networks. So, I readily commend FCC Chairman Ajit Pai for his diligence and hard work in keeping the FCC on track to act in a timely fashion.
The plan Chairman Pai announced today is a thoughtful effort to balance the various interests in a way that advances overall consumer welfare and the national interest. Because speed in repurposing the C-Band spectrum is all-important, providing sufficient compensation to the incumbent satellite operators to incentive their active cooperation and avoid litigation that might derail implementation is a key objective. In that regard, to ensure the prospect of sufficient payments, I might prefer a compensation plan that ties payments to incumbent satellite providers to the value of the spectrum to be auctioned. That said, while I haven't seen the details of Chairman Pai's plan and reserve judgment, the proposal contemplating that the satellite operators could receive up to $9.7 billion in accelerated relocation payments if certain repurposing timelines are met appears to be a meaningful step in the right direction of providing a sufficient incentive for the incumbent providers to cooperate.
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