The Future of U.S. Spectrum Policy
The Covid-19 pandemic fundamentally changed the way the world operates, shedding light on the importance of wireless spectrum – the invisible radio frequencies that allow for communication and connectivity worldwide. This finite resource is an integral tool in the digital world that continues to affect the global economy today, regardless of industry or background. Despite common misconceptions, you do not have to be a wireless provider, broadcaster, or traditional telecommunications stakeholder to care about spectrum. As the National Telecommunications and Information Administration (NTIA) and the Federal Communications Commission (FCC) collaborate to develop a National Spectrum Strategy[1] and Congress continues to consider related policy decisions around licensing,[2] businesses that operate within a vast number of industries will be better positioned for success if they maintain an understanding of spectrum policy, how it continues to evolve, and how it could impact operations.
What is Spectrum?
Across all industries, wireless connectivity coupled with the growth of 5G has been a key facilitator of economic growth and innovation, and wireless spectrum is an integral part of an increasingly connected world. From enabling cell phone service and in-home Wi-Fi to remote patient monitoring or precision agriculture, wireless connectivity has the power to transform lives and industries.[3]
In the United States, the FCC and NTIA share regulatory authority over the proper management and allocation of spectrum.[4] Under this authority, the FCC issues licensed spectrum to users such as cell phone providers and radio and TV broadcast companies, which grants individual companies “the exclusive right to transmit on an assigned frequency within a certain geographical area,”[5] while the NTIA manages the use of spectrum y federal agencies such as the Department of Defense, the Federal Aviation Administration, and the Department of Agriculture Forest Service. [6] Effective Management and efficient use of this finite resource is critical in ensuring that all systems that rely on it remain operational.
In addition to licensed spectrum, there are also parts of the spectrum band designated for unlicensed users- allowing companies and technologies to use these airwaves on a non-exclusive basis to transmit communications without authority from the FCC so long as they remain within designated unlicensed bands. [7] From in-home Wi-Fi to baby monitors, microwaves Bluetooth headphones, and garage door openers, unlicensed spectrum powers key parts of our lives that require connectivity and has made America a leader in innovation and contributes significantly to the U.S. economy.[8]
Recently, as a demand for connectivity continues to increase, debates about the future of spectrum policy- including how to best allocate spectrum- have steadily escalated. In particular, with the lapse of the FCC’s spectrum auction authority in March 2023, lawmakers and companies who rely on spectrum are raising concerns about the potential risks to connectivity, national security, and American technological leadership if Congress does not prioritize policies to modernize our nation’s spectrum allocation.[9] Coordinated efforts, like the National Spectrum Strategy[10]– a whole of government approach to maximizing the potential of spectrum resources- will being together valuable industry and government insights to modernize spectrum policy and reassert U.S. leadership in wireless connectivity.
A Critical Inflection Point in Spectrum Policy
Given its importance for companies, governments, and individuals, the global push for innovation in connectivity and competition for leadership in 5G has intensified. Up to this point, the United States has led the world in wireless connectivity through unmatched private investment and a regulatory framework that has enabled innovation.[11] However, as global competition for wireless leadership increases, the United States risks falling behind. A coordinated, effective plan for the future of U.S. spectrum policy is essential to mitigate the effects of congested airwaves, promote U.S. innovation, and protect national security if the United States is to avoid ceding global leadership in wireless spectrum.
For key stakeholders, like trade associations, policy think tanks, and lawmakers, resolving spectrum policy debates is a critical priority. Across these stakeholder groups, there are varying positions on how best to leverage spectrum innovation in the United States. For example, the Cellular Telephone Industries Association (CTIA) believes there is an urgent need to increase the capacity of spectrum by accelerating the auction level and unlocking greater opportunities.[12] While CTIA believes the auction should include all levels of spectrum, it has a particular focus on mid-level spectrum to ensure efficient use in the near-term. Additionally, the Computer and Communications Industry Association (CCIA) has urged NTIA to explore high-level spectrum expansion and unlock more mid-band spectrum to “foster innovation and boost the U.S. economy.”[13]
Among lawmakers, spectrum policy debates have been defined by a bipartisan consensus that allowing the spectrum auction authority to lapse has presented significant risk to U.S. wireless leadership.[14] In 2022, Senators Ben Ray Luján (D-NM) and John Thune (R-SD), along with Representatives Mike Doyle (D-PA-18) and Bob Latta (R-OH-05), introduced the Spectrum Innovation Act to reauthorize the FCC’s spectrum auction authority while promoting public safety and national security.[15] The Competitive Carriers Association (CCA), Public Knowledge and the Open Technology Institute at New America, CTIA, and NCTA – The Internet and Television Association have voiced their support for this bill. However, despite the bill passing in the House with demonstrated support across party lines, it was not taken up by the Senate.[16] Ultimately, members of the Senate could not agree on the timing of a short-term extension, and a long-term extension was off the table while the Department of Defense (DoD) and National Telecommunications and Information Administration (NTIA) worked to finalize a study about the feasibility of opening up for commercial use a portion of the wireless spectrum currently under the control of the Pentagon.[17] As a result, the impasse on FCC spectrum auction authority has left key industries hanging in the balance.
Lacking adequate action from Congress, despite bipartisan support, mismanagement of spectrum threatens the operational success of industries by creating more congested airwaves that can cause service outages[18] and has the potential to harm long-term viability of American wireless leadership. Efforts like the National Spectrum Strategy can be an opportunity for the United States to reestablish its leadership in spectrum by reassessing spectrum use, reducing congestion, and repurposing bands for new innovations like 6G buildout.[19]
Where Does the U.S. Go From Here?
As demand for spectrum continues to grow, new collaboration between the FCC and NTIA to reach a National Spectrum Strategy is a step towards modernizing spectrum policy for the future and ensuring adequate access to both licensed and unlicensed spectrum. The National Spectrum Strategy will be designed to ensure Americans have “sufficient access to spectrum” and “maximize the potential of our nation’s spectrum resources.” [20] As the FCC looks ahead to the next wave of technological advancement, some of their top priorities should include The goal of each of these priorities is to ensure that spectrum is allocated efficiently and effectively, preventing unwanted interference, and protecting both national security and the future of technological innovation.
Beyond modernizing spectrum allocation, the United States has the potential to demonstrate leadership on the international stage when it comes to the future of 6G. Smart private investments and federal policymaking around 4G in 2011 propelled the economy, creating a $43.6 billion increase in GDP between 2011 and 2014.[21] While the United States was a global leader in 4G, other countries, like China and Japan, are vying to innovate in the race towards 6G.[22] These countries are “gaining practical experience in implementing new use cases before Western countries.”[23] By having a cohesive spectrum policy, foreign adversaries are reaping the economic and technological benefits left on the table by a lack of U.S. innovation and connectivity.
The use of spectrum is pervasive throughout U.S. society and economy and nearly every industry relies on it in some form or fashion. Regardless of what industry a business operates within, be it manufacturing, retail, energy, automotive, agriculture, or one of the many others that rely on connectivity in some form, it’s critical that they plan ahead to determine what their future spectrum needs may look like, including applying for new licenses and navigating a world of unlicensed spectrum. Now is the time for companies to join the conversation by engaging in direct advocacy on Capitol Hill, participating in listening sessions and comment periods with the FCC and NTIA, or educating the public and raising awareness around the issue. A spectrum strategy is only effective with collaboration between industry leaders and policymakers under a commitment to reaffirm America’s leadership in this space as the world ushers in the next generation of connectivity.
[1] “Developing a National Spectrum Strategy,” National Telecommunications and Information Administration (last accessed August 9, 2023), https://ntia.gov/issues/national-spectrum-strategy.
[2] Sean Michael Newhouse, “Spectrum authority lapse impinges on broadband, 5G plans,” Roll Call (July 6, 2023)
[3] “The 5G Economy,” CTIA (last accessed August 9, 2023), https://www.ctia.org/the-wireless-industry/the-5g-economy.
[4] “Radio Spectrum Allocation,” Federal Communications Commission (last accessed August 9, 2023), https://www.fcc.gov/engineering-technology/policy-and-rules-division/general/radio-spectrum-allocation#:~:text=The%20radio%20spectrum%20is%20the,and%20Information%20Administration%20(NTIA)
[5] “Licensed Vs. Unlicensed Spectrum: What’s The Difference?,” IOTA Comm (January 13, 2020), https://www.iotacommunications.com/blog/licensed-vs-unlicensed-spectrum/.
[6] “How Spectrum is Used,” National Telecommunications and Information Administration (last access August 9, 2023), https://www.ntia.gov/book-page/how-spectrum-used#:~:text=The%20Department%20of%20Homeland%20Security,collect%20data%20and%20command%20them.
[7] “What Is Unlicensed Spectrum and How Does It Contribute $95.8B Annually to the Economy?,” NCTA—The Internet & Television Association (February 17, 2022), https://www.ncta.com/whats-new/what-is-unlicensed-spectrum-and-how-does-it-contribute-958b-annually-the-economy
[8] Ken Gaulter, “An Introduction to Unlicensed Spectrum: An Open Field for Innovators,” Lookfar (August 18, 2017), https://www.lookfar.com/blog/2017/08/18/unlicensed-spectrum/.
[9] Nadia Dreid, “FCC Needs Spectrum Auction Powers ASAP, Carriers Say,” Law360 (May 11, 2023) https://www.law360.com/articles/1606854/fcc-needs-spectrum-auction-powers-asap-carriers-say. (Subscription required)
[10] “Developing a National Spectrum Strategy,” National Telecommunications and Information Administration (last accessed August 9, 2023), https://ntia.gov/issues/national-spectrum-strategy.
[11] Clete Johnson, “The Strategic Imperative of U.S. Leadership in Next-Generation Networks,” Center for Strategic and International Studies (January 20, 2023), https://www.csis.org/analysis/strategic-imperative-us-leadership-next-generation-networks.
[12] “Spectrum Policy,” CTIA (last accessed August 9, 2023), https://www.ctia.org/spectrum.
[13] “CCIA Submits Comments To NTIA On National Spectrum Strategy,” Computer & Communications Industry Association (April 17, 2023), https://ccianet.org/news/2023/04/ccia-submits-comments-to-ntia-on-national-spectrum-strategy/.
[14] Chris Riotta, “Lawmakers seek action on pressing spectrum issues,” Next Gov FCW (September 20, 2022), https://fcw.com/digital-government/2022/09/lawmakers-seek-action-pressing-spectrum-issues/377368/.
[15] “Luján Joins Colleagues to Introduce Spectrum Innovation Act,” Ben Ray Luján U.S. Senator for New Mexico (April 28, 2022), https://www.lujan.senate.gov/newsroom/press-releases/lujan-joins-colleagues-to-introduce-spectrum-innovation-act/.
[16] Michael Doyle, “H.R. 7624 (117th): Spectrum Innovation Act of 2022,” GovTrack (April 28, 2022), https://www.govtrack.us/congress/bills/117/hr7624.
[17] Gopal Ratnam, “FCC spectrum auction authority lapses amid questions on military need,” Roll Call (March 10, 2023), https://rollcall.com/2023/03/10/fcc-spectrum-auction-authority-lapses-amid-questions-on-military-need/.
[18] Federal Communications Commission Policy Statement, ET Docket No. 23-122 and ET Docket No. 22-137 (April 21, 2023), https://docs.fcc.gov/public/attachments/FCC-23-27A1.pdf.
[19] Chungang Yang & Jiandong Li, “What is Spectrum Congestion,” Handbook of Research on Software-Defined and Cognitive Radio Technologies for Dynamic Spectrum Management, Chapter 18 (©2015, last accessed August 9, 2023), https://www.igi-global.com/dictionary/advanced-cognitive-radio-enabled-spectrum management/46190#:~:text=The%20situation%20that%20occurs%20when,frequencies%20that%20are%20close%20together.&text=The%20groOnlwing%20demands%20of%20radio,spectrum%20exploitation%20and%20management%20technologies. (Subscription required)
[20] See supra note v
[21] Id
[22] “How America’s 4G Leadership Propelled The U.S. Economy,” Recon Analytics (April 16, 2018), https://api.ctia.org/wp-content/uploads/2018/04/Recon-Analytics_How-Americas-4G-Leadership-Propelled-US-Economy_2018.pdf.
[23] Laurens Cerulus and John Hendel, “Hologram wars: The race to 6G,” Politico (April 11, 2021), https://www.politico.eu/article/6g-race-eu-united-states-china/.
[24] Matthew Orf, “US Wireless Industry Calls for More 5G Spectrum,” Counterpoint (June 2, 2023), https://www.counterpointresearch.com/us-wireless-industry-calls-for-more-5g-spectrum/.
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