Auctions

The Senate Commerce Committee's first hearing of 2020, "Industries of the Future" dealt with the federal government's role in advancing new technologies. Federal Communications Commissioners Jessica Rosenwrocel and Michael O'Rielly testified and spoke about 5G. On the issue of speeding the 5G rollout, Committee Chairman Roger Wicker (R-MS) pointed out that there is "a company on TV" already advertising that they are already leading the industry in 5G. Commissioner Rosenworcel said there have been some deployments, which was exciting, but that they were chiefly in urban areas.

A bipartisan group of leading national security senators introduced legislation to encourage and support US innovation in the race for 5G, providing over $1 billion to invest in Western-based alternatives to Chinese equipment providers Huawei and ZTE.

Sen. John Kennedy (R-LA) sent a letter to Federal Communications Commission Chairman Ajit Pai requesting that the chairman update him on any progress made on FCC auction plans and compensation proposals for satellite companies operating within the C-Band. At present, foreign satellite companies are operating within the C-Band, a part of the spectrum that the FCC is attempting to set aside for future 5G wireless use. Spectrum refers to electromagnetic waves that wireless devices use to deliver voice, text, video and other wireless communications.

On July 29, 2019, Reps Grace Meng (D-NY), James Clyburn (D-SC), TJ Cox (D-CA), Ro Khanna (D-CA), and Cindy Axne (D-IA) wrote to Federal Communications Commission Chairman Ajit Pai to express strong disapproval of the FCC's elimination of the educational requirements for the Educational Broadband Services (EBS) in the "Transforming the 2.5 GHz Band" Report and Order.

Sen John Kennedy (R-LA) is angling to hold more Federal Communications Commission hearings soon in his appropriations subcommittee overseeing the commission, still focused on how FCC Chairman Ajit Pai will structure a planned auction of 5G-friendly airwaves in the C-band. “Let me speak bluntly, we’re watching the FCC like a hawk,” said Sen Kennedy.

The collision of corporate opportunism and Republican anti-government orthodoxy has pushed the United States backwards on the allocation of important spectrum for fifth-generation wireless networks (5G).

Current law requires that spectrum auction proceeds are automatically deposited in the US Treasury, barring a few exceptions. Legislation would be required to direct C-Band auction proceeds to other causes, such as a transition fund or incentive payments to satellite operators. The Senate Commerce Committee approved a bill called the 5G Spectrum Act, which would direct at least 50% of C-Band auction proceeds to the Treasury and 10% to rural broadband.

While our universities and tech firms still lead in cutting-edge innovation — from artificial intelligence to 5G wireless technology — it is China that has deployed them. The US is losing the commercialization race, a failure of our own making. America has no domestic manufacturer of 5G equipment, so it must rely on European or Chinese suppliers.

The Federal Communications Commission will conduct a transparent public auction that allows all bidders the opportunity to buy what the mobile industry deems prime real estate in their effort to roll out 5G networks nationwide. The sale could yield an estimated $20 billion to $40 billion for the US Treasury, help mobile carriers build 5G networks, and offer wireless internet service providers the opportunity to bring high-speed broadband to rural and hard-to-serve areas—if policymakers get this moment right.

In the race to 5G, American wireless companies are sorely lacking one essential ingredient: mid-band spectrum. Federal Communications Commission Chairman Ajit Pai announced that  the FCC will pursue a public auction of a portion of the 3.7 to 4.2 GHz spectrum band – also known as the C-Band – by the end of 2020. Senate Commerce Committee approved S. 2881, C-Band legislation that would modify the automatic Treasury deposit.