House Communications Subcommittee member Rep. John Joyce, R-Pa., said during a Wednesday USTelecom event he wants renewed pushes to restore the FCC’s lapsed spectrum auction authority and enact a broadband permitting revamp legislative package to be among the subpanel’s top priorities in the next Congress. Broadband executives likewise named Capitol Hill action on broadband permitting legislation as their top congressional priority once Republicans have control of both chambers in January. The officials also noted interest in lawmakers’ work on a potential USF revamp.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
CTA is optimistic it can work with the new Trump administration on tech issues, two of the group's top policy officials told us. The outlook on spectrum policy and other issues isn’t completely clear, they added.
The Biden administration is making progress on each of the five bands it's studying as part of the national spectrum strategy (see 2311130048), Shiva Goel, NTIA senior adviser-spectrum policy, said during a Center for Strategic and International Studies webinar late Thursday. Other speakers said the government must make available more high-powered licensed spectrum to ensure the nation doesn’t fall behind China and other competitors.
Three former Republican FCC commissioners agreed Thursday that the Trump administration will likely focus on making more spectrum available for 5G and 6G, but conceded that the bands targeted by wireless carriers won’t be easy to address. Harold Furchtgott-Roth, director of the Hudson Institute's Center for the Economics of the Internet, joined Cooley’s Robert McDowell and Mike O’Rielly, now a consultant, during a Hudson forum.
During a Thursday Incompas virtual event, communications industry lawyers offered few clues about which lawmakers will fill vacant top GOP slots on the House and Senate Communications subcommittees, but CEO Chip Pickering forecast substantial leadership continuity on both chambers’ Commerce committees. Pickering and lawyers who spoke at the event, meanwhile, saw limited prospects during the lame-duck session that Congress would advance a spectrum legislative package or funding for the FCC’s lapsed affordable connectivity program and Secure and Trusted Communications Networks Reimbursement Program.
AT&T CEO John Stankey urged lawmakers and the incoming Trump administration in a Tuesday Fortune opinion essay “to act in favor of broader coverage and lower prices by moving past” conducting more studies on reallocating midband spectrum bands, as the Biden administration has emphasized. The government should instead release those frequencies, Stankey wrote. He also endorsed the 2024 Spectrum Pipeline Act (S-3909), which “reauthorizes the FCC’s auction authority and directs the agency to license mid-band airwaves for full-power mobile broadband services. And because auctions, spectrum clearing, and development of sharing mechanisms can take years, it’s important that Congress act expeditiously next year to make it law.” The proposal, led by Senate Commerce Committee ranking member Ted Cruz, R-Texas, “is a smart spectrum policy that will stimulate investment, and deliver better mobile coverage and capacity, including in underserved areas,” Stankey said: “It’ll also mean more competition in home broadband by facilitating fixed wireless services in geographically remote places that have been historically harder to reach with wired connections.” Should he becomes Senate Commerce chairman in the next Congress, as observers expect, Cruz will likely prioritize the Spectrum Pipeline Act rather than pursue legislation resembling the rival Spectrum and National Security Act (S-4207) Democrats back (see 2410290039). Stankey acknowledged DOD concerns about repurposing midband frequencies that currently include military incumbents but said “true national security requires the soft power that comes with a vibrant, competitive economy that makes America the world’s best place to develop cutting-edge technology and enables robust networks that can carry the essential load during unplanned events.” It’s “in the Pentagon’s interest to make an earnest effort to balance the legitimate needs of the military with those of American consumers and businesses to have access to world-class mobile infrastructure."
Nokia anticipates President-elect Donald Trump will make his tech priorities clear early in the new administration, Brian Hendricks, Nokia’s chief policy and government affairs officer, said in a statement on Monday. “It is critical that programs like rip-and-replace and the Affordable Connectivity Program, which require new funding, be part of the early focus,” Hendricks said: “Failure to address these programs will risk expanding the digital divide, particularly in rural parts of the country. Aggressive action to restore spectrum auction authority to the [FCC] and to prioritize critical bands for future wireless deployments will provide the needed opportunity to fund and stabilize these programs via auction proceeds.” Hendricks called on the administration to work with Congress.
UScellular announced on Thursday a $1 billion agreement to sell AT&T some of its spectrum licenses, which are not part of the proposed sale of wireless assets to T-Mobile (see 2405280047). T-Mobile is buying “substantially all” of UScellular’s wireless operations in a deal valued at about $4.4 billion, but it's purchasing only some of its spectrum licenses. AT&T agreed it will buy 3.45 GHz spectrum and 700 MHz B/C-block licenses for $1.018 billion. Like an earlier deal with Verizon and two undisclosed carriers, the sale is dependent on closing the proposed T-Mobile transaction. "We are pleased with the significant value that will be realized in the various transactions recently announced," said Laurent Therivel, UScellular CEO: "This agreement adds a fourth mobile network operator, in addition to T-Mobile, to the list of those whose subscribers will benefit from the sale of our spectrum licenses. As with the other mobile network operators, we are confident that AT&T can put it to productive use in communities throughout the U.S.” With the latest transaction, UScellular said it has deals to sell 70% of its total spectrum holdings, excluding high-band spectrum, measured on a MHz/POPs basis. UScellular retains 1.86 billion MHz/POPs of low and mid-band spectrum and 17.2 billion MHz/POPs of millimeter-wave, Therivel said, noting that the most valuable spectrum left to sell is in the C-band. “Our C-band licenses are positioned in an attractive mid-band frequency that can deliver outstanding speed and capacity.” There is “a substantial 5G ecosystem of equipment vendors and existing infrastructure that uses C-band” and “they have a lengthy build-out timeline, with first and second build-out dates of 2029 and 2033, respectively.” The deal “is in line with UScellular’s objective to monetize its remaining spectrum following the transaction with T-Mobile announced in May,” said RBC Capital Markets in a note to investors. The firm estimated that the price for the 3.45 GHz spectrum associated with the sale is 55 cents per MHz/POP, compared with the national average spectrum price of 77 cents during the 2022 auction. The C-band holdings are UScellular’s most valuable unsold band, RBC said, noting an average price of 94 cents MHz/PoP in the 2021 auction: “We view the remaining C-Band licenses as [complementary] to AT&T's and Verizon's holdings.”
Senate Intelligence Committee Chairman Mark Warner, D-Va., said during a Thursday Punchbowl News event he would prefer the chamber pursue a middle-ground between the Spectrum and National Security Act (S-4207) and 2024 Spectrum Pipeline Act (S-3909) as a legislative package for renewing the FCC’s lapsed airwaves auction authority. He also voiced concerns about the Biden administration’s implementation of $65 billion in broadband money from the Infrastructure Investment and Jobs Act, echoing criticisms congressional Republicans raised about how long it has taken for funded projects to come online.
Senate Commerce Committee ranking member Ted Cruz, R-Texas, will likely redirect the panel's airwaves legislative focus toward a version of his 2024 Spectrum Pipeline Act (S-3909) next year should Republicans control the Senate after the Nov. 5 elections and he becomes chairman. Cruz could face continued headwinds from DOD's staunchest Capitol Hill backers if he pursues legislation similar to S-3909, lobbyists and others predicted. Current Senate Commerce Chair Maria Cantwell, D-Wash., hopes she can attach her rival Spectrum and National Security Act (S-4207) to an end-of-year omnibus package (see 2409170066).