Cell towers. Getty Images
The U.S. House Energy & Commerce Committee’s Subcommittee on Communications and Technology is conducting a hearing on Wednesday related to a draft bill that would push the Federal Communications Commission (F.C.C) to develop a plan to auction more government-held spectrum for commercial wireless use.
The bill, dubbed the Spectrum Pipeline Act of 2015, seeks to set a framework for moving forward with government airwaves and the F.C.C.’s spectrum auction process. The bill would push the F.C.C. to work with the National Telecommunications & Information Administration (N.T.I.A.) to outline rules and procedures for relocating federal spectrum for users and band-sharing for non-federal users. It would also require those agencies to develop a timeline for competitive bidding, although it does not identify the specific spectrum bands for auctioned.
Broadcasting & Cable quotes the majority staff memo for the hearing:
Though there has been progress made in achieving the goals set forth by the National Broadband Plan, additional spectrum is still needed to satisfy the spectrum clearing targets. Federally-held spectrum has been considered as an opportunity for consolidating systems and repurposing cleared bands for commercial use as the Federal government is the largest single user of spectrum.
Also discussed at the hearing Wednesday is the Federal Spectrum Incentive Act — a piece of legislation designed to incentivize government agencies to relinquish their airwaves. The overall intent of the hearing seems to be one of how to figure out who to get more spectrum available for commercial use, and to improve the auction process which, as of now, is deeply competitive and has experienced scandal over the last year.
A discount program designed to try to make the bidding ground fairer for small companies who have to contend with the deep pockets of telco juggernauts like AT&T and Verizon was abused by Dish Networks earlier this year. In a wireless spectrum auction in January, $45 billion worth of spectrum ended up distributed among bidders. Dish garnered $13.3 billion worth of bids, and claimed $3.3 billion in discounts that go to small businesses. But the company had actually garnered spectrum under SNR Wireless and Northstar Wireless — two small telcos of which Dish owns 85%. Dish had bankrolled their bids, and thus claimed the discounts.
Outrage naturally ensued, sparked by wonder at how SNR and Northstar were able to claim so much in the bidding process, and the F.C.C. voted in July to limit how big businesses receive discounts through the agency’s spectrum auctions after that debacle.
Ultimately, it seems as though these drafted bills and proposals target relieving the burdened spectrum market in the U.S. somewhat. Whether or not federal agencies can be incentivized to give up precious spectrum is one question, but what is without doubt is that the growing commercial wireless sector clamors for more spectrum at every turn. Especially with advancing wireless technologies on the table like improving speeds, and even now talk of 5G wireless, spectrum will remain coveted.
