Commissioner Carr to Congress: Renew FCC's Auction Authority

As reported by Christopher Cole in Law360 (subscription required), Commissioner Brendan Carr seized the moment at the FCC's August Open Meeting and urged Congress to renew the agency's spectrum auction authority.

In a recent post to the Free State Foundation's blog, I once again noted the importance of the FCC's auction authority, which was allowed to lapse in March of this year. (I first addressed this topic in "Extending FCC Spectrum Auction Authority Is Essential to the 5G Race," a February 2023 Perspectives from FSF Scholars.)

Before voting to approve a Notice of Inquiry regarding non-federal spectrum usage, Commissioner Carr made a similar plea:

I'd be remiss if I didn't note today, while we have a number of some of the top congressional staffers in the room, to reiterate the call for Congress to reauthorize the FCC's spectrum auction authority. So I know it's August recess, Congress isn't in session, but if, over the August recess, you happen to find some good spectrum auction authority somewhere, we would be happy to put it to good use.

Chairwoman Rosenworcel responded by thanking him for "the shameless plug."

To view this interaction, please click here.

Congress Should Reinstate the FCC's Spectrum Auction Authority

On Monday, four members of the House Energy and Commerce Committee, including Chair Cathy McMorris Rodgers (R-WA), issued a statement indicating that they are "extremely disappointed" that Congress has not yet passed the Spectrum Auction Reauthorization Act of 2023 (H.R. 3565).

In "Extending FCC Spectrum Auction Authority Is Essential to the 5G Race," a February 2023 Perspectives from FSF Scholars, I warned that, absent congressional action, the FCC's auction authority soon would expire – thereby shutting off the spectrum pipeline that is essential not only to our nation's continued global leadership in the mobile space, but also to our overall economic growth. On March 9, 2023, that concern became reality. And over four months later, the wait for a legislative solution drags on.

H.R. 3565 would reinstate the Commission's auction authority through September 30, 2026. It also would appropriate an additional $3.08 billion for the FCC's "rip-and-replace" program, which provides funds to remove from American communications networks suspect hardware manufactured by Huawei, ZTE and other untrustworthy sources.

As Free State Foundation President Randolph J. May noted in a May 25, 2023 post to the FSF Blog, the day prior H.R. 3565 advanced out of committee on a unanimous 50-0 vote. Unfortunately, it has not yet reached the House floor.

The expiration of the Commission's auction authority impacts more than just future auctions. FCC Chairwoman Jessica Rosenworcel has taken the position that the agency can neither grant to T-Mobile the licenses in the 2.5 GHz band for which it paid $304 million nor approve its request for special temporary authority (STA) to use that spectrum in the interim.

In a statement to Fierce Wireless, the FCC's press secretary wrote that subsection 11 of Section 309 of the Communications Act "clearly states that 'The authority of the Commission to grant a license or permit under this subsection shall expire March 9, 2023'; so, any special temporary authority the FCC could have would flow from this section of the statute, which as you know is still currently expired."

T-Mobile and others, including a group of former FCC General Counsels, interpret the relevant statutes and agency precedents quite differently.

Big picture, the path out of this situation is clear: Congress should act expeditiously to reinstate on a long-term basis the Commission's auction authority. In the meantime, the agency can and should consider seriously the legal arguments referenced above that would allow T-Mobile to put to its highest and best use – whether on a licensed or STA basis – the spectrum for which it already has paid.

Report Stresses Importance of Mid-Band Spectrum for 5G and U.S. Leadership

On June 7, the Center for Strategic & International Studies released a report titled "Spectrum Allocation for a Contest with China." Authored by James Andrew Lewis, the report emphasizes the need for allocation of more mid-band spectrum to support commercial 5G services. 

The report argues that American success in competition with China and global influence depends on the U.S. staying at the cutting edge of technology. This includes 5G wireless technologies; "[b]ut the United States lags far behind the rest of the world in allocations of the spectrum needed for 5G." The report states that federal government agencies have been allocated 60% of the mid-band spectrum compared to only 5% for licensed commercial users. Thus, "U.S. mid-band allocations diverge from the practices of other leading economies, including China, all of which have allocated much more mid-band spectrum to 5G uses."

Also, the report acknowledges that the expiration of the FCC's spectrum license auction authority in March of this year "deprives the United States of a valuable spectrum management tool and makes it more difficult to align spectrum use to make the country more competitive with China." And it rightly calls for the U.S. to find ways to allocate sufficient spectrum for 5G while supporting other national security objectives.

 

Free State Foundation Senior Fellow Andrew Long also wrote about these same important topics in his February 2023 Perspectives from FSF Scholars, "Extending FCC Spectrum Auction Authority Is Essential to the 5G Race."

China Task Force Recommends U.S. Strengthen its 5G Competitiveness and Security

On September 30, the House Republicans' China Task Force (CTF) released its report on the multi-faceted generational threat to the U.S. posed by the Chinese Communist Party (CCP). Included in the CTF report is the following key finding:

The U.S. and the CCP are in a global race for deployment of 5G wireless technology. The CCP seeks to increase its global power by building 5G infrastructure domestically and abroad to dominate standard-setting, technological development, and the global supply chain. The U.S. must promote private and public cooperation on rapid 5G deployment by private industry for consumer services and innovation, economic growth, and national security. 

The CTF rightly emphasizes that "U.S. 5G deployment is driven entirely by the private sector" – as opposed to being government-driven as in communist China. The CTF report further emphasizes that "[s]ecuring U.S. networks and ensuring our allies take similar action are crucial components to maintain U.S. leadership in technology and protect the privacy of all Americans." 

Several recommendations for addressing these concerns are included in the CTF report, along with lists of bills that have been introduced in Congress and that would implement those recommendations. (Although the CTF is comprised of only Republican House members, two-thirds of the legislative bills cited in the CTF report have bipartisan support.) One such recommendation is that Congress "pass legislation to streamline fixed and wireless communications network permitting processes at the federal, state, and local level to ensure all Americans are connected." As the CTF report explains: "[r]educing U.S. regulatory barriers will speed up deployment of broadband and 5G communications infrastructure, and that will promote a market for secure solutions not made in China." 

 

Additionally, the CTF report includes this key finding:

U.S. leadership in advanced manufacturing across industrial sectors is imperative to put the U.S. on the leading edge of new products, processes, and services, as the CCP seeks to move up the value chain away from its traditional reliance on mass production of low-end goods to more high-tech manufacturing.

The CTF report recommends that the U.S. work with the United Kingdom as well as other nations to form a D-10 group of leading democratic nations that will focus on "developing and deploying 5G and subsequent generations, addressing 5G mobile communications and vulnerable supply chains, and leveraging technical expertise" in emerging technologies for the benefit of democratic nations. 

 

The CTF report is available online here.

Federal Policy Should Promote 5G Deployment by Market Providers

American success in 5G absolutely depends on strong investment & innovation by private marketplace providers. Any attempt by the federal government to build its own nationwide 5G network would sap the vitality of next-gen wireless services in the U.S. https://t.co/ayZiXSqjKe

— Seth Cooper (@CooperFSF) September 22, 2020

MEDIA ADVISORY: The FCC Should Be Commended for Holding ORAN Forum

Regarding the FCC's forum today regarding ORAN (open radio access networks), the following statement may be attributed to Free State Foundation President Randolph May: 

The FCC should be commended for holding the forum today exploring ORAN, what it means, and what it may portend for the future. Even discounting the usual hype accompanying new technological advances and business models, ORAN, properly understood, holds the promise to promote increased marketplace competition and innovation, and, at the same time, promote U.S. national security by increasing supply chain diversity. ORAN could be a case in which technological advances associated with 5G, artificial intelligence, and virtualization, and changing business models, advance freedom in both the economic and geopolitical spheres. But this should be done largely in a context of private sector decision-making with minimal direct government intervention and mandates.

Report Shows U.S. Needs Licensed Mid-Band Spectrum to Support 5G

A June 2020 report by research firm Analysys Mason titled "Comparison of Total Mobile Spectrum in Different Markets" shows the pressing need in the U.S. for more mid-band spectrum to support commercial 5G services. The report assesses total mobile spectrum availability in different countries for low mid and high bands and compares them to the U.S. Key report findings include the following: 

• Low Band: "Several countries are planning to make further licensed low-band spectrum available: future low-band assignments for these countries, on average, will total 90MHz. This means that commercial access to the 1.3GHz and 1.7GHz bands will be an important element of continued US low-band leadership."

• Mid Band: "In a key range of global 5G spectrum (3.3–3.6GHz), the US today has no licensed spectrum available, while other benchmark countries that have made these airwaves available average nearly 200MHz. However, the US would become one of the leading benchmark countries if it made 250MHz (or more) of spectrum available in the lower 3GHz band, as some have proposed, and the FCC and NTIA are exploring with commercial providers." (emphasis added)

• High Band: "The US currently leads the world in terms of the amount of licensed high-band spectrum, though China may catch up. In the next few years, China could make 8250MHz of licensed high-band spectrum available, just below the 8300MHz the US could make available. 

These findings reveal the policy imperative of repurposing lower 3 GHz band spectrum for commercial use. It is reported that federal government agencies are the primary users for all spectrum from 3.1-3.55 GHz. Other nations have recognized the importance of licensing that spectrum for 5G services in their territories and the U.S. needs to catch up. No one should expect the relocation of federal agencies in the lower 3 GHz band will be an easy or quick task. Efforts to make this mid-band spectrum available need to be prioritized and fast-tracked now. 

Importantly, clearing spectrum for licensed commercial use in the lower 3 GHz band will be critical. Recent initiatives to allocate spectrum for unlicensed use are sufficient and need not be expanded at the expense of licensed use. As Analsys Mason explains, the U.S. has now allocated significant spectrum resources to unlicensed usage. With respect to mid-band spectrum, the report observes: "The recent US addition of 1200MHz of unlicensed spectrum in the 6GHz band is 2.4 times more than the average amount of additional unlicensed mid-band spectrum other countries are considering making available in the next few years." And regarding mid/high band spectrum in the U.S., the report states: "policymakers have made around three times as much unlicensed spectrum as licensed spectrum available." 

It is generally recognized that a mix of unlicensed spectrum and licensed spectrum is needed to support next generation wireless networks. Critical to a healthy mix – and to U.S. competitiveness in the global 5G race – is a supply of licensed commercial spectrum in the lower 3 GHz band.  

Attorney General Barr Presses for U.S. Action Now on 5G

On February 6, Attorney General William Barr delivered the keynote address at the Justice Department's "China Initiative Conference" in Washington D.C. Attorney General Barr primarily addressed the technological and economic challenges posed to the U.S. by China in the areas of intellectual property theft and 5G dominance. His address is worth reading or viewing in full. (For C-SPAN, AG Barr's address begins about 1 hour and 26 minutes into the stream and his remarks on 5G begin at about 1 hour and 38 minutes in.)

In his address, AG Barr stressed the importance of making spectrum resources available for 5G services in the U.S. He specifically identified C-Band and L-Band spectrum as critically important for rapid deployment of 5G. From AG Barr's prepared remarks: 

The FCC has been working hard to get the C-band spectrum out into the market through an auction.  It is critical to get this done within the next few months.  Even then, the U.S. will need 400,000 base stations to cover the nation.  This could take a decade or more to build out. Recently, there have been interesting proposals to jump-start U.S.  5G by also making available L-band spectrum for use in tandem with the C-band.  By using the L-band for uplink, we could dramatically reduce the number of base stations required to complete national coverage.  It has been suggested that this could cut the time for U.S. 5G deployment from a decade to 18 months, and save approximately $80 million.  While some technical issues about using the L-band are being debated, it is imperative that the FCC resolves this question. The bottom line is that we have to move decisively to auction the C-band spectrum, and bring to resolution the issues over L-band.  Our economic future is at stake.  We have to bear in mind that, given the narrow window we face, the risk of losing the 5G struggle with China should vastly outweigh all other considerations.

Free State Foundation scholars have also advocated prompt action by the FCC to put C-Band and L-Band spectrum into commercial use. On February 6, FSF President Randolph May issued a statement regarding the FCC's proposed order to transition incumbent users in the C-band and clear for auction 280 MHz in that band. And my December 19, 2019 blog post, "FCC Should Green Light Wireless Services in L-Band Spectrum," urged prompt FCC decision on Ligado Networks' modified applications to deploy a satellite-terrestrial hybrid mobile network for commercial services in unused L-band spectrum.  

Importantly, AG Barr's keynote address also called attention to the pressing issue of 5G equipment suppliers and the need to have a market-ready alternative to Chinese 5G equipment suppliers. His call that the U.S. and its closest allies need to consider ways to put our large market and financial muscle behind viable competitors – insofar as it is carried out by by private American and allied companies – merits serious consideration. 

Report Compares Countries' Progress on 5G Spectrum Availability

On February 3, Analysys Mason released the latest update in its series on the global race to 5G.  In "International Comparison: Licensed, Unlicensed, and Shared Spectrum, 2017-2020," U.S. efforts to make new spectrum resources available for 5G network services are measured against efforts by several foreign nations, including Canada, China, Germany, North Korea, and the U.K. The report includes a useful chart comparing spectrum resources that each nation has made available for commercial use for 5G services since 2017 as well as spectrum expected to be available for 5G in 2020. 

One important step the U.S. can take in 2020 to further our nation's position in the race to 5G is ensure a prompt auction for C-Band spectrum that incentives incumbents to vacate the spectrum and cooperate in a speedy transition to prospective auction winners. In this regard, see Free State Randolph May's statement from February 6 regarding the FCC's plan to repurposing C-Band spectrum.

U.S. Delegation Members Highlight U.S. Gains for 5G at International Conference

On January 7, 2020, the Federalist Society's Practice Group Podcast featured a teleforum discussion on "The Race to 5G and the World Radio Conference." The panel included Ambassador Grace Koh, who led the U.S. delegation to WRC-19, as well as the FCC's International Bureau Chief Thomas Sullivan. WRC-19 was held in Egypt and concluded its work in November 2019. The panelists offered interesting analysis of what was accomplished at WRC-19 regarding mobile wireless services, particularly regarding the use of mmWave spectrum for 5G services. Panel discussion also touched on U.S. cooperative efforts with regional partner nations, the 24 GHz band, and the postures of China and Russia at WRC-19. The podcast's page can be found here.

Free State Foundation scholars, including FSF President Randolph May, Visiting Senior Fellow Gregory Vogt, and myself have addressed 5G in a number of writings. Expect more from FSF scholars on 5G in 2020, including at the Free State Foundation's Twelfth Annual Telecom Policy Conference. This year's conference, Broadband Beyond 2020: Competition, Freedom, and Privacy, will be held at the National Press Club in Washington, DC on March 10. Register for the conference here.

My June 2019 blog post, "U.S. Policymaker Should Stick to Their 24 GHz Spectrum Band Plan," addressed disagreement among certain federal agencies regarding the use of that recently-auctioned spectrum. Importantly, the panelists on the Federalist Society's January 7 teleforum acknowledged that the U.S. delegation had achieved a united front on the 24 GHz band when it arrived in Egypt for the WRC-19. 

Op-Ed Connects Federal Regulatory Policy and 5G to National Security

In a just-published op-ed at Townhall.com, Law professor and national security expert incisively addresses the importance of pro-innovation and pro-market policy in advancing 5G networks, including the T-Mobile/Sprint merger, in the context of U.S. economic and national security interests. Professor Jaffer's op-ed, "Stoking Innovation in a Trade War: Reestablishing American Leadership in Critical Technologies," is worth a careful read.

Professor Lyons Analyzes Court Decision's Impact on 5G Deployment

Professor Daniel Lyons, a member of the Free State Foundation's Board of Academic Advisers, has written a new Perspectives from FSF Scholars paper analyzing an important court decision impacting 5G deployment. In "D.C. Circuit Decision Represents Setback to Next-Generation Network Deployment Efforts," Professor Lions reviews what United Keetoowah Band of Cherokee Indians in Oklahoma v. FCC(2019) means for 5G wireless infrastructure deployment and he also offers his insights on the D.C. Circuit's reasoning. 

As FSF scholars have long maintained, antennas and other small cell infrastructure pose little to no discernable impact, particularly compared to macro towers and base stations. Installation of small cell equipment deserves a more streamlined treatment by federal, state, and local governments.

Environmental and historical preservation reviews of small cell infrastructure has previously been the subject of prior legislation in Congress, including the SPEED Act. However, such legislation never passed. Following the D.C. Circuit's decision in United Keetoowah Band, the 116th Congress should seriously consider similar legislation aimed to accelerate 5G deployment. 

U.S. Policymakers Should Stick to Their 24 GHz Spectrum Band Plan

On June 3, the FCC announced winners in the successful auction of 5G-critical spectrum licenses in the 24 GHz band, raising $2 billion for the U.S. Treasury. Yet news outlets have reported on last-minute objections by agencies within the U.S. Department of Commerce to use of this spectrum that had been planned through a careful interagency process. U.S. policymakers shouldn't be deterred. It's important to the integrity of U.S. spectrum policy and to 5G deployment that the 24 GHz spectrum be used as planned. 

Rules regarding 24 GHz spectrum use were established through a five-year interagency process, and they are consistent with longstanding FCC standards limiting out-of-band emissions. Agencies in the Commerce Department have made claims, apparently without reliable and verifiable evidence, that 5G operations in the 24 GHz band could interfere with a weather sensor in an adjacent band. But their calls to change rules for the 24 GHz band, now echoed by some members of Congress, threaten the integrity of the interagency process and U.S. spectrum policy in international circles. Changes to rules would upend the investment-backed expectations of auction winners and hamper 5G deployment.

Indeed, there are many reasons to be skeptical of claims being made by NASA and Department of Commerce agencies NTIA and the National Oceanic and Atmospheric Administration (NOAA) about future interference with a single weather sensor. 

First, the claims by the Commerce Department agencies didn't timely persuade other agencies that were part of the 5-year interagency spectrum planning process. According to a March 8 letter to the Commerce Secretary and NASA Administrator by Chairman Ajit Pai: "For over two years, the studies produced by NOAA were never endorsed by either the FCC or NTIA due to outstanding technical concerns" and "[t]he interagency consensus was that these studies failed to demonstrate a need to tighten the international limits." Agencies may validly seek to influence policy based on alleged signal interference during the process but shouldn't do so after, when the FCC has already auctioned the spectrum. 

Second, Chairman Pai's March 8 letter pointed out: 

In order to settle the U.S. position, the FCC thus invoked the reconciliation process in light of our upcoming auction of the 24 GHz band—a critical band for the development of 5G services in the United States. Under that process, as you know, the Department of State becomes the arbiter—'breaks the tie' if you will—and determines the U.S. Government position. That is what happened here. The Department of State agreed with the FCC's approach, and that reconciled position is in fact documented. 

The State Department agreed with the FCC's approach, and that reconciled position is in fact documented." As the U.S. strives for a leadership role in 5G, a confused spectrum policy could undermine U.S. leadership in international venues, such as the International Telecommunications Union (ITU). The U.S. government's position ought to be communicated with one voice overseas.

Third, NASA and NOAA want ad hoc changes to out-of-band emission standards for the 24 GHz band. In other words, the dispute doesn't involve alleged interference according to existing standards. In fact, the rules established for the 24 GHz band are consistent with longstanding FCC standards limiting out-of-band emissions to protect passive services from high powered fixed services. Goalpost shifting is almost always suspect. And changes to the out-of-band emission standards would significantly reduce commercial service providers' ability to offer 5G, undermining the basis for their purchase of spectrum licenses. 

Fourth, when NASA and NOAA initially raised their last-minute objections to the planned use of the 24 GHz band, those objections involved a weather sensor, known as "the Conical Microwave Imager Sounder" that was neverdeployed. Rather, those agencies expressed concerns that out-of-band emissions from 5G operations would harm a weather sensor that was cancelled in 2006. 

Fifth, although Commerce Department agencies later raised still more last-minute objections, they appear unsubstantiated. For instance, the newer objections involve one of the weather sensors on a single satellite that reportedly is acknowledged to be much less susceptible to interference than the cancelled weather sensor. And in an April 29 letter to the Chairwoman of the House Committee on Science, Space, and Technology, Chairman Pai reiterated the Commission has never been presented with "a validated study" indicating operations consistent with existing out-of-band admissions standards would adversely affect existing use in the 24 GHz band, including weather forecasting. 

Technical engineering expertise isn't necessary to spot the credibility problems with these last-minute claims by Commerce Department agencies. They have offered too little, too late to justify pulling the rug out from under the interagency spectrum process.

Commercial providers made good faith pledges of $2 billion in spectrum license bids, and the federal government owes a pledge of good faith in sticking to its rules. U.S. policymakers should stay the course on the 24 GHz band and help ensure American competitiveness in the global race to 5G. 

FCC to Vote on Reallocating More Spectrum for 5G Services

In an April 17 FCC Blog post, Chairman Ajit Pai announced a new proposal to reallocate more spectrum for next-generation wireless services:

In addition, we’ll also move forward with yet another item to free up spectrum for wireless services. The President’s Fiscal Year 2020 budget — which “propos[es] legislative changes . . . that pertain to the FCC” and that “are designed to improve spectrum management and represent sound economic policy” — calls on the Commission to "either auction or use fee authority to assign spectrum frequencies between 1675–1680 megahertz for flexible use by 2020, subject to sharing arrangements with Federal weather satellites.” I agree with opening this spectrum for commercial use so that’s exactly what I intend to do. So today, as the first step down that path, I’m circulating a proposal to reallocate spectrum in the 1675–1680 MHz band for shared use between incumbent federal operations and new, non-federal fixed or mobile operations.

A TRDaily report quoted Ligado Networks Board Chairman Ivan Seidenberg, who commended the proposal’s potential benefits: “[I]f combined with other available frequencies, it could unleash 40 MHz of vital lower mid-band spectrum to serve mission-critical industrial Internet of Things and other emerging 5G applications.”

Reallocating 1675–1680 MHz for shared federal and non-federal commercial use, as Chairman Pai proposes, will help supply wireless infrastructure needs and further U.S. competitiveness in the global race to 5G. The creditworthy proposal is on the FCC’s agenda for its upcoming public meeting on May 9.

Research Report: U.S. Tied with China in Global 5G Readiness

Research firm Analysys Mason just released its report "Global Race to 5G – Update." Analysys Mason observes that in 2018 the FCC adopted important reforms and the U.S. improved its 5G readiness. Its report concludes that the U.S. is now tied with China for the top position in global 5G readiness. Also, the report finds: "[T]here is still more to be done to ensure that the US retains its leading position, and we have found that a key short-term goal for the US to maintain its leading position is improving the availability of mid- band spectrum." Mid-band spectrum is identified as being critically important for 5G services. Thus, increased availability of mid-band spectrum is a key near-term public policy goal for the U.S. to maintain its leading position. To get an up-to-date grasp on the status of the global race to 5G, read Analsys Mason's insightful report.

Ligado Takes Another Positive Step

On May 31, Ligado filed an amendment to its pending Federal Communications Commission license modification application advising the agency of further steps it has taken to protect aviation GPS devices from claimed interference. This is another in a series of steps that Ligado has taken since the company emerged from bankruptcy several years ago as it works, constructively it seems, to resolve potential interference issues that thus far have delayed putting the L-band spectrum to productive use.

We plan to take a closer look in the near future at where matters stand. But, as an immediate reaction to Ligado’s latest filing, there is no gainsaying that the deployment of advanced wireless services like those it proposes should provide substantial public interest benefits. As Valerie Green, Ligado’s Executive Vice President and Chief Legal Officer declared in a May 31 blog announcing the filing of the amendment: “Next-generation wireless networks – connecting an entire new category of IoT-enabled devices, sensors, and machines  – are projected to create three million new jobs and give the economy a $500 billion boost. Our 40 MHz of mid-band spectrum will help get our country there and regain ground in the global race to 5G.”

In today’s fast-paced marketplace environment – and with much at stake for the economy with regard to 5G deployment – it’s important, even imperative, that NTIA, indeed the entire Administration, and the FCC, work to ensure that Ligado’s proposal receives prompt consideration.

U.S. Leadership Must Continue in 5G Wireless Deployment

This week two reports were published that show why the United States’ leadership in 5G wireless deployment will be vital for the U.S. and global economies. The first report by Recon Analytics is titled “How America’s 4G Leadership Propelled the U.S. Economy,” and it emphasizes the sizeable economic benefits generated by the United States’ leadership in 4G wireless deployment.

The second report by Analytics Mason is titled “Global Race to 5G – Spectrum and Infrastructure Plans and Priorities,” and it finds that the United States has fallen narrowly behind China and South Korea in terms of 5G readiness.

These two reports show why U.S. leadership in 5G deployment is important for global trade and address how additional licensed spectrum and smart infrastructure policies will help advance U.S. 5G leadership.

Here are some of the key findings from the Recon Analytics report regarding the economic benefits that resulted from America’s 4G wireless leadership:

• U.S. leadership in 4G accounted for nearly $100 billion of the increase in annual GDP by 2016 as the trajectory of the wireless industry’s contribution to U.S. GDP shifted from a projected $350.3 billion in 2016 to a realized $445 billion.

• The launch of 4G in the U.S. increased total wireless-related jobs by 84% from 2011 to 2014.

• U.S. 4G leadership also meant roughly $125 billion in revenue to American companies that could have gone elsewhere if the U.S. hadn’t seized 4G leadership. U.S. 4G leadership also resulted in more than $40 billion in additional app store revenue flowing to U.S. companies and app developers.

The second report by Analytics Mason measures countries by their 5G “readiness,” which takes into account the amount and timeline of 5G spectrum availability, policies aimed at easing 5G infrastructure deployment, industry network and equipment trials, and industry commitment to 5G deployment. The report finds that the United States is third in 5G readiness behind China and South Korea and just ahead of Japan, the U.K., and Germany.

It is important that U.S. policymakers continue to promote policies that would enable the U.S. to lead the world in 5G readiness because the quicker 5G is deployed, the quicker U.S. consumers will experience the economic benefits of 5G - including improvements to healthcare, transportation, law enforcement, e-commerce, and education. Although 4G brought significant economic benefits, 5G, with at least ten times faster speeds than 4G, is projected to create $275 billion in investment, 3 million jobs, and $500 billion in additional economic activity.

As Free State Foundation President Randolph May wrote in a blog earlier this week, the “race to 5G” is not a zero-sum game. Americans benefit when other countries deploy next-generation wireless infrastructure in an efficient and timely manner. When more countries are connected, it increases the prospect of additional global communications and trade. But because the U.S. was a leader in 4G, it should continue to be leader in 5G not only to bring economic benefits to Americans, but also to encourage other countries to upgrade their wireless networks to 5G. At the global level, 5G is projected to create $12.3 trillion in economic activity in 2035 and support 22 million jobs worldwide.

As I discussed in a recent Perspectives from FSF Scholars, the FCC has adopted a handful of pro-consumer spectrum initiatives over the last year that will assign and allocate licensed spectrum for commercial use. Most recently, the FCC voted to adopt a proposal on spectrum frontiers auctions “to promote the development of 5G wireless.” Moreover, the adoption of Commissioner Brendan Carr’s March 2018 proposal to reduce regulatory burdens and costs will create an estimated additional $1.5 billion in 5G investment.

The FCC should continue to assign and allocate more licensed spectrum and reduce regulatory barriers that stifle 5G deployment in order for the United States to remain a leader in the 5G revolution. U.S. leadership in 5G deployment will create billions of dollars in economic benefits for Americans and also will encourage other countries to upgrade their wireless networks, increasing the prospect of additional global trade.