Thursday, Dec. 8, 2022 | 2 a.m.
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As Congress looks to wrap up its work before the end of the year, one essential item on its to-do list is the reauthorization of the Federal Communications Commission’s general spectrum auction authority, which has significant economic and societal ramifications.
Spectrum — the radio frequencies that transmit information wirelessly — is a necessary component for mobile phones and wireless internet access. The federal government, via the FCC, controls who has access to the various spectrum bands and how that spectrum is used, with “licensed spectrum” being required for wireless and other uses that need exclusive use of a particular airwave band.
Congress first gave authority to the FCC to conduct auctions in 1993, allowing private entities to bid for the use of radio frequency licenses. Since that time, wireless companies participating in FCC spectrum auctions have paid more than $233 billion to the U.S. Treasury. Spectrum auctions are a rare government approach that has been incredibly successful.
But the authority to conduct those auctions depends on periodic congressional reauthorization. The current authorization expires Dec. 16, so the window of time in which Congress needs to act is closing, and the need to do so is compelling.
In addition to providing substantial revenue to the treasury without raising taxes, the release of licensed spectrum is a component for maintaining U.S. competitiveness compared with other countries, including less-amicable competitors such as China.
In fact, China, Japan and France have access to significantly more mid-band spectrum, which is great for 5G use as it can cover large distances and transmit large amounts of data.
By comparison, the United States has a deficit of spectrum, which could present a challenge for consistent internet connectivity as demand continues to increase — especially as use rises in areas like online schooling, remote work and telemedicine. The American wireless industry has access to just 5% of lower midband spectrum while government users have access to 12 times more in the midband.
Consumer use is, of course, where the rubber meets the road for spectrum use. One lesson from the COVID pandemic was how the resilience and stability of internet network infrastructure were instrumental in keeping people connected to their jobs, schools and families.
But the age of cord cutting was upon us even before the pandemic, with more users relying on wireless access, a trend that is even higher in underserved communities. For example, one-quarter of U.S. Hispanic adults are the largest segment of “smartphone only” internet users. Hispanic wireless users are twice as likely to rely on their devices to access the internet for everyday needs.
While important for everyone, improving wireless access is a crucial component of closing the digital divide — the gap in access to communication technologies that hurts millions of minority and low-income communities.
The benefits and need for congressional reauthorization of spectrum auctions are compelling. In a best-case scenario, Congress would extend the FCC’s reauthorization authority for a term shorter than the usual 10 years and combine that with a viable new spectrum pipeline — that is, a plan to identify spectrum bands for future 5G use and thus for future auctions.
Such a move by Congress would help address present and future needs for a critical element of the 21st-century economy, helping businesses of varying sizes across a range of industries, and helping individuals and families make a better life for themselves.
Mario Lopez is president of the Hispanic Leadership Fund, a public policy advocacy organization. He wrote this for InsideSources.com.
