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$100M DOD Midband Value Claim Disputed

AAF's Westling to Congress: Don't Abandon Push for Spectrum Pipeline in Reconciliation

American Action Forum’s Jeffrey Westling urged Capitol Hill on Thursday not to abandon hopes of mandating reallocation of some federal agencies’ spectrum as part of a budget reconciliation package. His argument came as DOD backers' lingering objections to reapportioning any military-controlled bands still threaten to derail that push (see 2502180058). Meanwhile, Spectrum for the Future pushed back Wednesday night against what it called “misleading claims” during a Senate Commerce Committee hearing (see 2502190068) that an FCC auction of DOD-controlled midband frequencies could generate $100 billion in revenue.

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“A clean reauthorization” of the FCC’s lapsed auction mandate “is attractive, but it is not a comprehensive fix,” Westling said in a primer aimed at congressional staffers. Not simultaneously mandating a spectrum pipeline “could actually limit the ability for the FCC to hold new auctions.” A clean auction renewal “could result in 10 more years without any meaningful reallocation of spectrum to commercial use,” he said: It would lead to “negative results for the reconciliation process,” in part because the Congressional Budget Office would score a no-pipeline proposal as having lower estimated revenue.

An auction authority extension would also mean “all potential auctions are scored” for the renewal period, and therefore “subsequent bills that may designate specific bands for auction would likewise score lower,” Westling said. “The political incentive to make more spectrum bands available (and thus generate revenue) will be diminished and could stifle subsequent action from Congress to make more government spectrum available for commercial use.”

Spectrum for the Future also weighed in. “Advocates for T-Mobile, AT&T, and Verizon are trying to convince Congress to treat auctions of military spectrum like free money for other federal spending, but they are looking at only their own side of the ledger,” it said. “An exclusive auction of the U.S. military's mid-band spectrum would cost taxpayers at least $250 billion due to the cost of redesigning and relocating critical defense systems. Not only would vacating the band take decades to complete and jeopardize America’s national security, but it would also result in a net loss to taxpayers.”

Senate Commerce Republicans doubled down Thursday on criticisms of DOD opposition to repurposing any of its spectrum, sending out a news release detailing statements by Sen. Marsha Blackburn, R-Tenn., and other GOP members that “emphasized the importance of American leadership in spectrum policy to protect our national security, prevent Chinese control of global communications networks, upgrade U.S. military capability and drive economic growth.” The news release omitted concerns that Sen. Deb Fischer, R-Neb., voiced about the effect that repurposing DOD spectrum would have on military systems. Witnesses at the hearing “agreed that expanding commercial access to mid-band spectrum can support both consumer needs and national security,” the panel said: “Senators warned that delays in auctions hurt national defense and America’s efforts to lead in global technology.”