Auctions

The Federal Communications Commission is an important institution. It oversees a huge input to our information economy: Spectrum. Fortunately, three decades ago, we developed a method for allocating spectrum that has garnered bipartisan praise, been copied around the world, underlaid two Nobel prizes, and is arguably the most successful communications policy innovation ever. Unfortunately, Congress can’t decide how to reauthorize that auction authority. Congressional dysfunction? Alas, not weird. The stakes are high: billions in investment capital, 10x more in economic impact.

House Commerce Committee leadership commended the passage on February 28th, 2023 on the House floor of H.R. 1108, a bill to extend the Federal Communication Commission auction authority deadline to May 19, 2023. The bill was sponsored by Reps. Cathy Rodgers (R-WA) and Frank Pallone, Jr. (D-NJ). “Spectrum policy is national security policy.

With the rapid rise of wireless technology, the demand for access to the spectrum has increased in recent years. However, there are critical and interrelated gaps and failures in the process and policies used for efficiently allocating the spectrum in the US. Key takeaways from an analysis on this issue include the following:

The federal government’s use of spectrum dates back to the beginning when radio frequencies were used to communicate—and so does the policy question of how to apportion spectrum access between government and private uses. The federal government has important missions that require the use of the electromagnetic spectrum. But federal spectrum lacks market discipline and profit motives, so it does not tend toward efficient use. Six proposals to improve upon this include the following:

Alan Davidson, head of the National Telecommunications and Information Administration, talked about the agency’s plan to advance open Radio Access Networks (open RAN).

The Federal Communications Commission's Wireless Telecommunications Bureau announces the grant of four long-form applications and the issuance of 12 licenses for Auction 108. On August 29, 2022, the FCC completed the auction of new flexible-use geographic overlay licenses in the (2.5 GHz) band and announced the results of that auction on September 1, 2022.

A bill that would free up more money for the Federal Communications Commission suspect tech rip-and-replace program — mandated by Congress — did not make it into the $1.7 trillion must-pass omnibus appropriations bill, according to an unhappy Competitive Carriers Association.

Congress is again kicking the can down the road on several issues important to the US telecommunications industry. A 4,155-page omnibus spending package bill that Congress unveiled is expected to pass in order to keep the government operating. But Congress punted on a long-term extension of the Federal Communications Commission’s auction authority, covering the shortfall for rip and replace funding, and consideration of more mid-band spectrum for wireless use. One tiny blurb of the bill was devoted to the FCC’s

Soon after CTIA released its latest study supporting its argument for more licensed spectrum, the Wireless Internet Service Providers Association (WISPA) shot a letter over to lawmakers asking for more shared spectrum, similar to the Citizens Broadband Radio Service (CBRS) model. Signed by more than 200 companies in the WISP ecosystem, the letter urges lawmakers to support the 3.5 GHz CBRS model for future spectrum bands, such as 3.1-3.45 GHz.

The Federal Communications Commission's Wireless Telecommunications Bureau granted the first batch of new, flexible-use, county-based overlay wireless licenses made available in the 2.5 GHz auction, Auction 108. With most of the available spectrum in the 2.5 GHz band located in rural areas, this auction provides vital spectrum resources to support wireless services in rural communities. The FCC granted 51 of the 68 total long-form applications received from winning bidders in Auction 108, following a thorough review of the applications and a period of public comment.