House Republicans Eye 450 MHz of Spectrum for Reconciliation; Cruz Confident on Pipeline
Senate Commerce Committee Chairman Ted Cruz, R-Texas, said in an interview Thursday that “we are going to have [a restoration of the FCC’s lapsed] auction authority and a spectrum pipeline” in the coming budget reconciliation package, as talks appeared to be moving closer to a compromise headed into the weekend. Meanwhile, House GOP leaders are coalescing around a deal that would pair a 10-year renewal of the FCC’s auction mandate with a 450 MHz pipeline of airwaves that the commission can repurpose for 5G use, said several communications sector lobbyists who are closely monitoring negotiations.
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The proposed 450 MHz pipeline has DOD backing, but it's less clear whether the wireless industry will be satisfied, lobbyists said. It would be less than the 600 MHz that FCC Chairman Brendan Carr and new CTIA CEO Ajit Pai emphasized last week as their reconciliation goal (see 2505060036). It's also well below the 2,500 MHz that Cruz called for NTIA to identify in the 2024 Spectrum Pipeline Act, which he has repeatedly touted this year as his preferred basis for an airwaves title (see 2502190068). Two lobbyists said they were unsure whether Cruz would sign off on the House proposal.
Cruz emphasized Thursday that there wasn’t yet a final spectrum deal, noting that “we are engaged in active discussions and negotiation with all the stakeholders.” House Commerce Committee Chairman Brett Guthrie, R-Ky., told us Wednesday night that he and other leaders are “still discussing” how to structure spectrum pipeline language, but “we’re getting close, hopefully.” An airwaves title will “be part of” House Commerce’s portion of the reconciliation package, but “I don’t know how it’ll be set up” yet, he said.
Guthrie said he has “also been working with” the House Armed Services and Intelligence committees on repurposing some military-controlled frequencies, which have long been the main sticking point in spectrum legislative talks. “We certainly hope to have something” in time for House Commerce to mark it up this week, as currently intended, he said. The panel appeared to be setting the stage for a Tuesday reconciliation markup, in part by scheduling a press briefing on the coming measure for Monday morning. Some lobbyists said they expect House Commerce to have its measure ready for release Sunday.
Guthrie faced mounting pressure last week to maximize the value of a spectrum title in House Commerce’s reconciliation legislation amid some Republicans’ growing misgivings about major Medicaid cuts, which would otherwise form the bulk of reductions the party seeks. Congress’ budget resolution (H. Con. Res. 14), which will provide a blueprint for the reconciliation package, mandates that House Commerce find at least $880 billion in its areas of jurisdiction to offset an extension of the 2017 tax cuts and other GOP priorities. The Congressional Budget Office’s latest score estimates a 10-year renewal of the FCC’s lapsed spectrum auction authority is worth $80 billion-$90 billion.
Lobbyists emphasized Thursday and Friday that the frequencies that Republican negotiators want to fill the 450 MHz pipeline are still in flux. Several said the deal would have language to specifically exclude the 3.1-3.45 GHz band, which DOD supporters have adamantly opposed repurposing in recent years (see 2501070069). The core of the pipeline deal would mirror parts of DOD’s March proposal to make 420 MHz from current military-controlled frequencies available for FCC auction while maintaining the Pentagon’s grip on the lower 3 GHz band (see 2504040068), two lobbyists said. The proposal would allow for wiggle room on specific reallocation details because of House GOP leaders’ focus on the spectrum title’s offset value, lobbyists also said.
Digital Progress Institute President Joel Thayer, who last week argued that at least 825 MHz of midband spectrum could make it into a statutory pipeline (see 2505060044), told us that the lower 3 GHz band and any combination of bands are “still on the table” as a feasible compromise. “There has been no impetus for [DOD] to move faster” than it has claimed to move military systems off lower 3 GHz, so unless Congress mandates such an action, “they will loiter as long as they’d like,” he said. There are alternatives to that frequency, with portions of the 4 GHz band being one “good option,” along with the 7 GHz and 8 GHz bands.