As the nation closes the chapter on 2024, and a new Congress begins formulating its plans for the year ahead, it should use this opportunity to prioritize restoring the Federal Communications Commission (FCC) auction authority and building a robust pipeline of licensed spectrum—both critical to powering American networks and unlocking consumer benefits. Accomplishing these tasks would help close the digital divide, encourage future industry investment and innovation, and ensure that America continues to be an international leader in modern communications.
A great way for Congress to get the ball rolling is to first renew the FCC’s auctioning authority, which was shockingly allowed to lapse last year for the first time in history. Since then, no legislative proposal to permanently restore it has been successful. While Congress did recently pass an unrelated defense bill that allows for a one-time-only reauction of AWS-3 spectrum bands suitable for wireless use, this is insufficient. That is a shame because auction authority gives the Commission the power to host spectrum auctions, which serve several important functions.
First, auctions give commercial providers a regular opportunity to bid on exclusive access to specific radio frequencies—also known as licensed spectrum—upon which modern wireless networks operate. Without them, providers will struggle to obtain the spectrum they need to meet consumers’ seemingly unsatisfiable appetite for more data. This data powers the wide range of smartphones and other connected devices they have come to know and love and rely on for everything from basic communication and entertainment to online shopping and gaming.
Second, spectrum auctions generate significant revenue for the U.S. Treasury that can be used to meet a variety of government needs, such as paying down debt, and funding programs and services like next-generation 911 services and the now-defunct Affordable Connectivity Program. Since acquiring its auction authority in 1993, the FCC has held over 100 auctions that have generated more than $233 billion. With politicians always looking for new revenue streams, Congress should have restored the FCC spectrum auction authority long ago.
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Nate Scherer is a policy analyst with the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, visit us at www.TheAmericanConsumer.Org or follow us on X @ConsumerPal.