The refrain that very little gets done in Washington is now common, likely because it is so observably true. Issues of importance to the country seem to be perpetuated rather than solved, and often not even addressed. Instead, Congress distracts itself with reality show like hearings and legislative proposals that are more likely to raise money for a campaign than to raise up Americans.
One of the more recent failures has been the inability of Congress to extend the FCC’s spectrum auction authority.
Since 1993 the FCC has had the authority to auction radio spectrum licenses for use by various private sector entities. Spectrum is a finite array of frequencies, think of them as radio station channels, which the government manages on behalf of the people in pursuance of the “public interest.” An increasingly scarce resource, spectrum demands appropriate use and distribution to maximize the opportunity for innovation as a return benefit to the public.
Congress had empowered the FCC to grant licenses, including through spectrum auctions which in turn raise funds that are deposited into the U.S. Treasury. Until recently, the authority to auction blocks of spectrum had typically been extended a decade at a time. This practical option allowed for auctions to be planned appropriately to keep the pipeline of available spectrum flowing, and with an eye toward balancing the governance models to achieve the right mix of licensed, shared licensed and unlicensed spectrum.
Now, after a couple months-long extensions of the authority, Congress has allowed the auction authority to lapse entirely with no long-term solution in sight. This inaction puts our innovation economy, national security and ability to compete internationally at risk. Auctions allow new entrants, national efforts and regional players to start utilizing spectrum. Congress must stop dithering and make reauthorization of the FCC’s spectrum authority a priority. The country deserves nothing less.
However, even once Congress comes to its senses, the FCC will have to move with all due haste to ensure it delivers a steady stream of spectrum in all its licensed and unlicensed forms into the marketplace.
Without a robust pipeline, the promise of faster speeds, greater security and lower latency for next generation wireless services will never be fully realized as providers require significantly more spectrum to meet consumer demand. Given that little “greenfield” spectrum exists for licensed, innovative approaches, such as shared licensed spectrum, will be necessary just to be practical and to complement more traditional approaches such as licensed.
Given its ubiquity in our homes and work, unlicensed spectrum also faces challenges. Without an ongoing spectrum plan in place, unlicensed spectrum is at risk of being overburdened or limited, minimizing both a sandbox for innovation and what consumers demand to operate their households, businesses and so many other gathering places in our communities.
The key is finding the right spectrum balance for the right reasons — licensed is not just a piggybank for more congressional pork and unlicensed is not to be ignored because of its limited auction value, especially as its value to the overall economy is substantial. Economically, auction proceeds should be viewed as a great positive externality to continuing the critical building block for a successful spectrum policy. Promoting innovation and providing the right spectrum mix for the country, and the people, must be the focus and intent.
Spectrum is far too valuable to U.S. economic prosperity to be treated flippantly or with a short-term, narrow focus. Allowing FCC auction authority to lapse at all is bad enough. To allow the situation to persist is inexcusable. Spectrum needs to be treated as the terrific natural resource it is – the cornerstone of a vibrant innovation economy and future.
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