Auctions

The Federal Communications Commission has asked for a budget increase of a little more than 5 percent for fiscal 2024 (FY 2024), given inflation and its goal of getting broadband to 100% of the US in an equitable and inclusive way. In its budget request to Congress, the FCC said its top priority is the universal broadband the Biden administration has said should be achievable by the end of the decade. To do that, the agency said, it wants a 5.3

The Federal Communications Commission’s recent lapse in authority to auction off wireless spectrum has members of the House of Representatives concerned about the US's ability to stay competitive in a global wireless market. It has others concerned that the upgrade to next-generation 911 just lost its primary funding source. The Senate recently declined to vote on the House’s Spectrum Innovation Act, a bill that would have funneled spectrum fees into numerous initiatives, including $10 billion for upgrading aging 911 systems.

For the first time ever, Congress allowed the Federal Communication Commission's spectrum auction authority to lapse—a development that prevents the agency from auctioning more spectrum to 5G network operators. At roughly the same time, President Joe Biden's nominee to the FCC, Gigi Sohn [Senior Fellow and Public Advocate at the Benton Institute for Broadband & Society], abruptly withdrew from contention without any clear replacement.

If you’re a person living in the United States without quality broadband, you should be very disappointed in the way your elected officials have failed to meet the following challenge of closing the digital divide recently: 

The Federal Communications Commission granted licenses to seven of the smaller winning bidders in the 2.5 GHz auction, which was completed in August 2023.

The top Republican and Democrat on the House Commerce Committee are working to avert a lapse, in March 2023, of the Federal Communications Commission’s authority to auction spectrum as Congress seeks a more lasting plan that could pay for a number of telecommunications priorities.  Auctions of the spectrum have been a financial boon for the government.

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: