How Politics Stalls Wireless Innovation

[Commentary] The Federal Communications Commission’s L Band is made up of frequencies prime for cellular services but largely walled off for satellite links.

In 2004 the FCC moved to relax L-Band rules, permitting deployment of a terrestrial mobile network. Satellite calls would continue, but few were being made, and sharing frequencies with cellular devices made eminent sense. By 2010, L-Band licensee LightSquared was ready to build a state-of-the-art 4G network, and the FCC announced that the 40 MHz bandwidth would become available. LightSquared quickly spent about $4 billion of its planned $14 billion infrastructure rollout. Americans would soon enjoy a fifth nationwide wireless choice. But in 2012 the FCC yanked LightSquared’s licenses. Various interests, from commercial airlines to the Pentagon, complained that freeing up the L Band could cause interference with Global Positioning System devices, since they are tuned to adjacent frequencies. Yet cheap remedies—such as a gradual roll-out of new services while existing networks improved reception with better radio chips—were available. In reality, the costliest spectrum conflicts emanate from overprotecting old services at the expense of the new. With its licenses snatched away, LightSquared instantly plunged into bankruptcy. Five years on, the company has recapitalized and re-emerged with a new name, Ligado. It has hired deft policy players and is making deals to mitigate conflicts. Yet regulatory impediments continue to block progress. Years after the L-Band spectrum was slated for productive use in 4G, it lies fallow—now delaying upgrades to 5G. This familiar impasse in the political spectrum begs for correction.

The FCC should let Ligado use satellite licenses for cellular services. It should also permit competitors, including Ligado, to bid for new L-Band spectrum rights. Remaining border disputes should be consigned to binding arbitration, not allowed to sandbag progress in open-ended skirmishing. This would move radio spectrum out of oblivion and into the mobile broadband networks craved by consumers, innovators and the US economy. Just like the National Broadband Plan called for in 2010.

[Hazlett is a professor of economics at Clemson and former chief economist of the FCC (1991-92)]