An unexpected perfect storm of public policy variables is gathering and it could cause America’s 5G spectrum pipeline to run dry by year’s end.
Under the leadership of newly-confirmed Chairwoman Jessica Rosenworcel, our former agency, the Federal Communications Commission (FCC), is currently winding down a spectrum auction that will supply lifeblood to America’s emerging 5G ecosystem while generating nearly $22 billion in federal revenue.
Unfortunately, this is the last scheduled auction of its kind. At the same time, infighting between the FCC and Federal Aviation Administration (FAA) has frozen 5G operations in a recently auctioned parcel of airwaves, the “C-band,” due to concerns over alleged harmful interference to aircraft electronics.
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Furthermore, the recently signed infrastructure law set aside other precious spectrum for two years of study. Wireless carriers had been counting on these frequencies to help the U.S. win the global race to 5G and close the digital divide. But with two tranches of critical spectrum suddenly sidelined, America has created for itself a perilous spectrum gap. The FCC must quickly refill the spectrum pipeline at this crucial moment in the global competition for technological leadership.
A bipartisan solution is within easy reach that would strengthen our wireless infrastructure and global competitiveness while generating tens of billions in federal revenue without raising taxes or debt. But we cannot afford to delay. Our rivals in Asia and Europe are rushing to beat us in two races: one to define the 5G marketplace and another to gain an advantage in 6G, the next-generation wireless technology that will develop over the next decade. Our opponents want us to dither. Any pause in replenishing the spectrum supply chain would play into their hands and undermine our national economic security.
While U.S. companies are spending hundreds of billions of dollars to build the best 5G networks in the world, America’s success is not inevitable. For example, in July, China announced it had constructed nearly 1 million 5G base stations, one for every 1,500 people there. In contrast, the U.S. is lagging with about 100,000, or one for every 3,300 people.
Meanwhile, telecom equipment maker Ericsson projects mobile data usage will quintuple by 2026. A key obstacle to meeting soaring wireless demand, according to a recent study by the Center for Strategic and International Studies (CSIS), is a shortage of precious “Goldilocks” mid-band spectrum needed to carry vast amounts of new bandwidth-intensive 5G applications.
“The U.S. is in a competition where technological and economic leadership are as important as military strength,” the report concluded.
As we build 5G networks we must also promote policies to foster next-gen 6G. Spectrum planning takes decades. For instance, the FCC’s current auction will allocate spectrum first identified in 2007. By the time consumers get to use it a couple of years from now, 16 years will have passed. The FCC started freeing up frequencies for 6G experimentation in 2019, and it cannot slow down now. Our global rivals will continue to pour government and private money into 6G development while aiming to light up state-of-the art networks by 2026.
While the FCC is currently composed of two Democrats and two Republicans, which usually implies gridlock, spectrum auctions have historically enjoyed bipartisan support. Even though one of us is a Democrat and the other a Republican, during our four years together at the agency, we worked with each other, our FCC colleagues, the executive branch, and Congress to identify new airwaves to auction as part of the 2010 National Broadband Plan and the Spectrum Act of 2012. That laid the foundation for today’s 4G and 5G revolutions. With recent history as our guide, the FCC should act today to reload the spectrum supply chain.
An easy fix to this sudden spectrum gap, however, would be to restart the work the FCC began two years ago on an auction of powerful mid-band 2.5 GHz frequencies, spectrum that could help fuel broadband everywhere. If the FCC were to set a 2022 start date now for that auction, potential bidders could begin planning for opportunities to use the spectrum.
The COVID-19 crisis laid bare the desperate need for accessible mobile broadband, especially for unserved and underserved communities. Designating a new spectrum auction will unleash a rising tide that will float all boats. Since spectrum auctions were first launched in 1994, they have generated more than $207 billion for the Treasury, in non-inflation adjusted dollars, and generated hundreds of billions more in economic growth, job creation, and technological advancements, like the app economy.
Let’s promote essential infrastructure, fix a supply chain gap, close the digital divide and generate revenue for taxpayers in the process. Any hesitation will stunt America’s growth and hand our opponents a strategic advantage.
Mignon Clyburn, a Democrat, served as a commissioner of the FCC from 2009 to 2018, as Acting FCC Chair in 2013 and as co-chair of the Biden-Harris Innovation Transition Team.
Robert McDowell, a Republican, served as a commissioner of the FCC from 2006 to 2013, and is a partner at Cooley LLP and a senior fellow at Hudson Institute.
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