FCC Commissioner Anna Gomez warned at the CES in Las Vegas that the U.S. could fall behind other nations unless the agency once again has authority to conduct spectrum auctions. The remarks were her first at a CES as an FCC member. Meanwhile, Commissioner Brendan Carr, also at the show, said the FCC is moving backward on spectrum. Carr slammed the administration’s national spectrum strategy for not opening any new spectrum (see 2401100032), which he called “a bit of a miss.” CTA officials said Carr and Gomez toured the CES show floor together Wednesday.
One of the big wireless questions for 2024 is whether Dish Network will succeed as a fourth national wireless provider, New Street’s Blair Levin said in a weekend note to investors. Another is whether another carrier will buy USCellular, he wrote. He added: “There is a question about whether any potential buyers would face a risk of a government rejection, particularly given the views of Democratic antitrust authorities and the results of the last major acquisition to face an FCC review (T-Mobile/Sprint)." Any buyer other than AT&T, T-Mobile or Verizon would likely see easy approval, he noted. “Lots of studies are in the pipeline” in the aftermath of the national spectrum strategy, but “these won’t lead to more spectrum coming online before 2025,” Levin said. No resolution appears likely soon on the lower 3 GHz band, but 12 GHz “is the one place” the FCC could authorize a new band for terrestrial use, he said: "Depending on if and how the FCC does it, it could be a boost for DISH.” Levin also predicted Congress could authorize the FCC to sell returned AWS 3 licenses. Congress could authorize a “targeted reauction” without addressing broader DOD concerns “that are blocking efforts to reauthorize spectrum auctions.”
FCC Commissioner Anna Gomez wants to focus on empowering and engaging with underserved consumers and combating media disinformation, she said Tuesday during the Congressional Hispanic Caucus Institute’s inaugural Celebrating Latina Excellence event. A news release from her office called it “her first major speech.” Gomez was sworn in Sept. 25. In a news conference after her remarks Tuesday, Gomez said that her most immediate policy goals for the FCC are implementing continued funding for the affordable connectivity program and spectrum auctions authorization, both of which would require congressional action before the agency could act. “I am a firm believer in the power of competition to drive innovation that improves services and lowers prices for consumers,” Gomez said. “But competition only works when the market works”
Republican condemnation of the FCC’s actions since it shifted to a Democratic majority in late September -- and Democrats’ defense of the commission’s recent record -- dominated a Thursday House Communications Subcommittee hearing on agency oversight, as expected (see 2311290001). The hearing’s slightly rancorous tone signaled a return to more overtly partisan oversight, in contrast to relatively more bipartisan discussion when FCC commissioners testified in front of the subpanel in June, while the commission was still tied 2-2 (see 2306210076).
AT&T, Dish Network, NCTA and public interest groups were among those to call on the FCC to revisit spectrum caps, in response to a September notice from the FCC (see 2309220064). Other comments saw the rulemaking as a waste of time for the agency. AT&T asked for a rulemaking two years ago, focused on mid-band holdings, but the FCC's questions go beyond what AT&T sought (see 2310060051).
An Information Technology and Innovation Foundation report, released Monday, calls on the federal policymakers to develop policies that consider tradeoffs of licensed, unlicensed and shared spectrum, and make allocations for the right reasons. “Licensed spectrum is good for providing the certainty needed to sustain wireless applications that require large, sustained investments,” but revenue from license auctions should be seen as “a side effect, not a goal in itself,” the report said. Spectrum auctions can generate lots of revenue, but “it is the market mechanism (including tradability on secondary markets) and the type of rights embodied by an exclusive license that make it a productive allocation,” it said. Unlicensed spectrum, “is a good way to prevent usage rights from becoming too fragmented,” but claims of congestion shouldn’t justify making more available, ITIF said: “One commonly cited claim is that unlicensed spectrum’s uses are important and valuable, and therefore more bandwidth should be freed up to ensure more reliable access to it. The problem with this argument is that licensed spectrum exists precisely for those who can’t operate under the uncertainties associated with unlicensed spectrum.” Spectrum sharing has become increasingly necessary as spectrum becomes more congested, ITIF said. Dynamic sharing “could even become the first-best allocation if technological advances enable a generalized use-or-share framework” and “there can be little objection, from a policy perspective, to allowing additional uses of a licensed band that does not cause harmful interference to the licensee,” the report said. But there are also limitations, ITIF said, noting power levels permitted in the citizens broadband radio service band are “327 times lower than those in the exclusively licensed band just above it.”
Commenters disagreed sharply on what the FCC should do in response to an August notice of inquiry on understanding nonfederal spectrum use. Some observers have questioned how much will be gained by the inquiry, especially because it doesn’t ask about federal use (see 2308020054). Comments were posted Wednesday in docket 23-232.
Interest is still high in both the House and Senate in including a temporary restoration of the FCC’s auction authority in a continuing resolution to extend federal appropriations past the end of FY 2023 Sept. 30 (see 2309190001), but some on and off Capitol Hill now believe attaching the narrower 5G Spectrum Authority Licensing Enforcement Act (S-2787) is a more viable option for breaking the mandate logjam. Lobbyists believe the chances S-2787 will appear in a Senate-side CR improved considerably after the chamber passed the measure Thursday via unanimous consent.
Disagreements remain about whether the upper 12 GHz band can be reallocated for exclusive-use licenses, as carriers hope, in reply comments in docket 23-352. Some wireless commenters ignored the proceeding on the lower 12 GHz band (see 2309110061) and filed only on what is also called 13 GHz. Broadcasters and the satellite industry continue to raise objections (see 2308140046).
Senate Commerce Committee ranking member Ted Cruz, R-Texas, and Communications Subcommittee ranking member John Thune, R-S.D., declared themselves at odds Monday with the FCC’s decision to delay awarding the spectrum licenses T-Mobile bought last year in the commission’s 2.5 GHz auction while its sales authority remains lapsed (see 2303220077). The senators’ opposition highlights a growing view among Republicans that the FCC is delaying action on the T-Mobile licenses to spur on slow-moving congressional talks on a spectrum legislative package that would restore the commission’s auction authority (see 2308070001), Senate aides and others told us.