Senate Parliamentarian Elizabeth MacDonough “advised that a revised budget resolution may contain budget reconciliation instructions,” opening up the possibility of Democrats using that process again in FY 2021 to pass an infrastructure spending package or another measure, said the office of Majority Leader Chuck Schumer, D-N.Y., Monday. That "allows Democrats additional tools to improve the lives of Americans if Republican obstruction continues," the office said. Democrats began floating the possibility last month of using reconciliation on an infrastructure bill (see 2103160001). New America's Open Technology Institute and the Johns Hopkins University Center for Civil Society Studies proposed using "the windfall proceeds of current and anticipated spectrum auctions" to pay for a "Digital Futures Foundation" aimed at investing "in the significant advancements in public-purpose applications and services needed to close the various digital equity gaps for the benefit of all the American people." Some lawmakers are reexamining the possibility of using spectrum auction proceeds to pay for broadband funding in an infrastructure package (see 2104010062). Amazon CEO Jeff Bezos said Tuesday he backs an increase in the corporate tax rate to pay for infrastructure.
Some members of Congress are taking a tentative renewed look at legislation to reallocate proceeds from the FCC's recent auction of spectrum from the 3.7-4.2 GHz C band to pay for broadband, before Capitol Hill's debate over infrastructure spending. President Joe Biden proposes $2.3 trillion for infrastructure, including $100 billion for broadband (see 2103310064). Republicans criticized the administration for pursuing corporate tax increases to help pay for it.
House Infrastructure Committee Chairman Peter DeFazio, D-Ore., pressed the FCC to “take a more measured approach to the 5.9 GHz band” during President Joe Biden’s administration due to ongoing concerns about the commission’s November vote to reallocate the frequency for Wi-Fi and cellular vehicle-to-everything (see 2011180043). Some House Armed Services Committee members, meanwhile, emphasized during a Friday hearing the need for solutions to ensure DOD is able to maintain spectrum superiority over other nations for warfare purposes, while also allowing for telecom companies to gain access to more frequencies for commercial use.
Commissioners approved 4-0 an item that moves the agency closer to a 3.45-3.55 GHz 5G auction starting in early October. A notice proposes a standard FCC auction, similar to the C-band auction, rather than one based on sharing and rules similar to those in the citizens broadband radio service band. The draft public notice got several tweaks, as expected, including offering 10 MHz rather than 20 MHz blocks, but keeps larger partial economic area-sized licenses (see 2103150052). Commissioners Brendan Carr and Nathan Simington concurred on parts of the order because of lingering concerns.
Aides to the other three commissioners have been working with the office of acting Chairwoman Jessica Rosenworcel Monday on possible changes to a public notice proposing rules for an October auction in the 3.45 GHz band, said FCC and industry officials. The order is expected to be approved 4-0. It could get a few tweaks from the draft, officials said. They expected discussions to continue Tuesday.
The FCC OK'd priority access licenses for 222 of the 255 bidders in the citizens broadband radio service auction. The approved long-form applications cover 17,450 licenses, the FCC said Friday. The auction ended in August with total bids of $4.59 billion (see 2008260055). Verizon and major cable operators dominated, and Dish Network came in big (see 2009020057). Long-form applications were due Sept. 17. “Five years ago, this agency recognized that our traditional spectrum auctions needed an update -- and that the 3.5 GHz band was the perfect place to start,” said acting Chairwoman Jessica Rosenworcel: “We continue to make progress in implementing the 3.5 GHz band concept and further demonstrate US leadership in spectrum innovation.”
The FCC Precision Agriculture Connectivity Task Force unanimously approved an interim report Friday from the Accelerating Broadband Deployment on Unserved Agricultural Lands Working Group. The ag task force heard an update from the commission’s new Broadband Data Task Force (see 2103110050).
The FCC closed the first stage of the C-band auction Friday at $80.9 billion, not including about $13 billion in additional accelerated clearing payments (see 2101070048). All 5,684 spectrum blocks were sold. The FCC will next release the list of winning bidders. “The winning bidders, at least, perceive … tremendous value in acquiring the C-band spectrum and monetizing it over the course of the coming years, through the deployment of 5G services within an accelerated time frame,” Chairman Ajit Pai said at an American Enterprise Institute event Friday. Asked whether the costs will cause difficulties for carriers in building out their networks, Pai said that’s “a very good question” and deferred “to economists and those in finance” who monitor carrier balance sheets. Pai said offering the band through a standard spectrum auction was the right course. “After months of back-and-forth with stakeholders, we had serious concerns about the plans that were submitted for the private sale and whether it would be run competently,” he said: “In contrast, the FCC had a quarter-century track record of performing successful and transparent spectrum auctions.” S&P Global Ratings said the auction “will have a significant effect on balance sheets for U.S. wireless operators.” The nationwide average price per MHz/POP across all categories was 94.2 cents, BitPath Chief Operating Officer Sasha Javid blogged Friday. That's about 4.3 times the 21.7 cent price per MHz/POP for the spectrum sold in the citizens broadband service auction, he said. The most expensive license was for Red Oak, Iowa, which closed at $2.835 MHz/POP, and the most expensive top 20 market was San Diego, at $1.773, he said. The auction offered 280 MHz, rather than the 65 MHz in the AWS-3 auction. “This is why total gross proceeds in this C-band auction skyrocketed past the $44 billion raised in the AWS-3 auction to become the highest gross auction of all time,” Javid said. “We have heard the term ‘beachfront’ used to describe various bands over the last several years," wrote Wiley’s Ari Meltzer. "The market has spoken, and it has confirmed that mid-band has the view and the amenities.” The auction “showcased the critical need of the mobile wireless industry to have access to an important portfolio of spectrum to support connectivity for citizens, the economy, and U.S. technology leadership,” said Chris Pearson, president of 5G Americas. “This record-breaking spectrum auction demonstrates the wireless industry’s commitment to leading the emerging 5G economy and underscores the importance of developing a robust pipeline of spectrum auctions,” said CTIA President Meredith Baker.
FCC Chairman Ajit Pai is expected to tee up several items for a busy Jan. 13 open meeting, his last on the commission, industry and FCC officials said. The meeting is expected to be 5G heavy, including a notice on a 2.5 GHz auction and possibly a 3.45-3.55 GHz and 12 GHz item. Also likely, Pai could use the meeting to complete action on the latest Communications Act Section 706 report (see 2012160051) and other items he wants to finalize as chairman. Pai’s blog on the meeting is due Tuesday, with draft items to be posted Wednesday.
The upcoming shift to a 2-2 split FCC at the start of President-elect Joe Biden’s administration doesn’t necessarily have to mean total gridlock, as those opposed to Senate confirmation of Nathan Simington as commissioner are forecasting, officials and FCC observers told us. They do believe FCC Democrats’ ability to move on big-ticket policy priorities, like bringing back the rescinded 2015 net neutrality rules, will be hindered until the Senate confirms Biden’s to-be-named nominee for the seat held by Chairman Ajit Pai. The Senate confirmed Simington Tuesday with unanimous Republican support and similarly uniform Democratic opposition (see 2012080067).