A New Administration Brings Renewed Hope for Renewed FCC Spectrum Auction Authority

It has been 686 days since Congress allowed the FCC's spectrum auction authority to expire on March 9, 2023. Absent additional auctions, not to mention the identification of specific spectrum bands to be auctioned for commercial use, mobile operators will struggle to satisfy consumers' insatiable demand for wireless data.

Moreover, the U.S. could risk ceding mobile broadband leadership to its global adversaries – in particular, China, the national security concerns regarding which I wrote about recently in two posts to the FSF Blog.

As Rhonda Johnson, AT&T EVP, Federal Regulatory Relations, wrote in a January 15, 2025, blog post, "AT&T stands ready to invest in the next set of 'anything-is-possible' predictions about what 'you will' be able to do in the years to come" – but "[t]he private sector cannot acquire the spectrum it needs in the U.S. until Congress reauthorizes the FCC to conduct auctions and the government allocates more full-power mid-band spectrum for licensed commercial use."

Fortunately, there is reason for optimism.

First, in his Statement on being designated FCC Chairman, Brendan Carr prioritized "unleashing new opportunities for jobs and growth through agency actions on spectrum."

Second, at today's House Committee on Energy and Commerce Subcommittee on Communications and Technology hearing titled "Strengthening American Leadership in Wireless Technology," regarding which Free State Foundation Director of Policy Studies and Senior Fellow Seth L. Cooper blogged yesterday, Subcommittee Chair Richard Hudson (R-NC) noted the following in his Opening Remarks:

Last Congress, the [FCC's] spectrum auction authority expired for the first time due to disagreements about how spectrum resources should be allocated. These auctions have historically brought in billions to our national economy, with the highest spectrum auctions raising over $80 billion from private companies. It is simple economics: there is limited supply, unlimited demand, and a willingness to pay. We need to reauthorize the FCC's spectrum auction authority immediately.

Third, Senate Commerce Committee Chairman Ted Cruz (R-TX) reportedly has described renewal of the FCC's spectrum auction authority as "his top tech policy priority for reconciliation, a process that will allow the GOP to push through budget-related legislation with its slim Senate majority."

In March 2024, Senator Cruz and Senator John Thune (R-SD), the new Senate Majority Leader, introduced the Spectrum Pipeline Act of 2024, legislation that would have renewed the FCC's spectrum auction authority and required it to auction for full-power commercial use at least 1,250 megahertz within 6 years.

House Hearing Should Prompt Action on Wireless Spectrum, FCC Auctions

On January 23, the House Subcommittee on Communications & Technology will hold a hearing titled "Strengthening American Leadership in Wireless Technology." The hearing will feature witness testimony addressing spectrum management, licensed versus unlicensed spectrum, spectrum auction authority, international harmonization, and radio access networks (RANs).

The hearing is important because next-generation wireless networks are vital to our nation's economic vitality and competitive. Also, the hearing is timely because there is an urgent need for more spectrum dedicated to commercial wireless use, particularly licensed spectrum and especially spectrum in the mid-band range (1 GHz to 7 GHz).

 

Wireless device connections and mobile data usage are rising sharply each year, with demand rising ever-higher in the years to come. Unfortunately, the U.S. supply of licensed spectrum is likely to fall short absent the reallocation of additional spectrum from government occupancy to private commercial use. At this moment, there is no spectrum waiting in the wings to be repurposed for commercial use, despite federal agencies using or at least occupying significant amounts of spectrum resources. To make matters more difficult, the FCC's general authority to conduct spectrum license auctions and issues licenses to auction bid winners lapsed in 2023. 

 

The 119th Congress and the Trump Administration should take decisive action to replenish the stock of mid-band spectrum and revive the Commission's auction authority. The first Trump Administration's National Spectrum Strategy stalled out, and the Biden Administration's National Spectrum has been criticized for its painful slowness and overstudying instead of producing results. Whatever has come before now, every available good option for fast-tracking and getting more spectrum into private use should be pursued and a re-stocked spectrum pipeline made into reality. 

 

The House Subcommittee's January 23 spectrum hearing memo is available here. Hopefully, the hearing will lead to prompt concrete action in the 119th Congress on spectrum and other important wireless policy issues. 

FSF Submits Comments to the FCC Opposing a So-called "Amnesty"

 

Today, Free State Foundation President Randolph May and Senior Fellow Andrew Long submitted comments to the FCC opposing a so-called "amnesty" window during which winners of auctions to award government subsidies from the Rural Digital Opportunity Fund could back out of their commitments to construct broadband infrastructure without meaningful consequence.

Here are key sentences from the top of the comments:

"Granting this request would further delay the connection of unserved households. It would unjustly favor certain auction participants – a privileged group that seemingly includes government-owned and government-affiliated networks already unduly advantaged by their government status – over others. And by creating a classic 'moral hazard,' it would encourage irresponsible behavior that threatens the efficacy of reverse auctions generally. The WCB therefore must deny this request.”