Senate Commerce Ramping Up for Spectrum Hearing Before Month's End

A spectrum hearing may happen later in July, Chairman John Thune, R-S.D., told us last week. “It’s a possibility; it’s on the list of possible hearings,” Thune said, saying nothing is yet scheduled. “Almost every issue that comes in front of our committee right now comes back to spectrum.” He predicted any hearing would “be sort of more of a landscape assessment of things” and on “just how to get more spectrum,” in addition to how best to reallocate government spectrum and spectrum efficiency, key topics that various officials told us were slated for the hearing.

Other likely witnesses include Blair Levin of the Brookings Institution, a former FCC official who helped manage the creation of the FCC National Broadband Plan; Technology Policy Institute President Thomas Lenard; and Pierre de Vries, spectrum initiative co-director at the Silicon Flatirons Center. Another possibility is FCC Commissioner Jessica Rosenworcel, an advocate for unlicensed spectrum use.

Commerce Committee members have introduced several spectrum-related bills this Congress. Sen. Marco Rubio, R-Fla., backs the Wireless Innovation Act (S-1618) alongside several other Republicans, to press for reallocation of government spectrum and ease wireless siting rules. He and Sen. Cory Booker, D-N.J., also back the Wi-Fi Innovation Act (S-424) to compel testing of the upper 5 GHz band. Sens. Ed Markey, D-Mass., and Deb Fischer, R-Neb., back the Federal Spectrum Incentive Act (S-887), which would allow government agencies to recoup portions of the money from spectrum they give up to auction. Sens. Amy Klobuchar, D-Minn., and Fischer also back the Rural Spectrum Accessibility Act (S-417), which would allow carriers to split up spectrum licenses.

One important backdrop will be the billions of dollars raised in last year’s AWS-3 spectrum auction, said a veteran wireless industry lobbyist. Members of Congress would love to replicate that, the lobbyist said, emphasizing the value of freeing up more government spectrum for commercial use. He sees very fertile ground in pressing for such reallocation, such as in the Federal Spectrum Incentive Act, and emphasized that the broadcast TV incentive auction is the only big opportunity for more spectrum in the future, as it stands now.

Earl Comstock, an Eckert Seamans attorney who helped write spectrum legislation as a Senate staffer, questioned the carrier hunger for spectrum: “Is it spectrum scarcity or failure on the part of the incumbents to upgrade the electronics?” Comstock said. He also emphasized an open question of the government’s future needs for the spectrum it holds and the congressional dynamics of advancing spectrum legislation -- if any moves, it will likely happen through a reconciliation bill, he said. Armand Musey, president of Summit Ridge Group, also questioned the carriers’ spectrum needs. “Cell site growth has slowed so it’s not like they’re stretched,” Musey said. “They’re using far less than expected.” CTIA, which has aggressively lobbied on the issue, may be “afraid of new entrants in the long run,” Musey considered of the wireless industry push to acquire more spectrum now.

CEA Vice President-Government and Political Affairs Veronica O’Connell sees “momentum” in the Senate and House in pressing for government reallocation of spectrum. She also strongly expects the underlying issues in the Wi-Fi Innovation Act to come up at a July Commerce hearing on spectrum, citing a recent exchange between Booker and an automotive industry witness at a subcommittee hearing. It “might start to move,” she said.

“It’s always more likely that a Republican bill gets moved forward,” said Roger Entner, an analyst for Recon Analytics who has conducted research on behalf of CTIA, considering the GOP-controlled Senate. He praised Rubio’s “balanced” approach to legislation, which “puts a timeline around what the administration has already laid out as a goal.” What’s missing from the Rubio legislation is incentive for government to give up its spectrum -- “There’s nothing that pushes the government users to actually give it up,” he said. “There’s a ton of inertia.” The topic is “arcane” but with “dramatic” economic impact, he added.

A wireless industry lobbyist said that he sees the Rubio bills and the Fischer/Markey reallocation measure as good pieces of legislation. The Federal Spectrum Incentive Act has a higher chance of passing due to its bipartisan basis, and the Rubio bills are less likely due to the presidential politics implications. Rubio is seeking the GOP nomination for president. The wireless lobbyist thinks anything that allows Congress to score additional revenue, will ultimately, have the best chance of passage. Musey said he believes any legislation that targets underutilized spectrum is “going to go the furthest.”

Lawmakers may revisit parts of the FCC rules for spectrum auctions, several observers said, suspecting the rules could come up as a topic. Thune sent a letter to Dish Network earlier this year inquiring about the designated entity rules and told us he sees that as a springboard into a broader review of incentive auction rules. The incentive auction is a “one-time shot,” Entner said. Lawmakers may want to include a provision in any spectrum package that if the incentive auction fails, the FCC can “try again without seeking authorization” from Congress, he said. Congress could also give the commission guidance on simplified incentive auction rules and its desires for the designated entity provisions, he added.

Thune told us that he’s open to legislation moving but didn’t show his hand on which bills he may prefer. “Possibly, we’ll see,” Thune said. “Yeah, there’s some stuff out there but hard to say exactly at this point.”