In March, the Federal Communication Commission’s (FCC) authority to auction spectrum lapsed for the first time since Congress delegated such authority to the agency 30 years ago. This is a problem for several reasons.  

As readers of the American Action Forum’s Team Tech insights know, spectrum refers to the frequencies over which wireless signals travel and enable the use of wireless technologies, from video calling to online banking to telemedicine. Until its authority lapsed, the FCC had been auctioning spectrum for wireless licenses and issuing those licenses to firms that had won previous auctions. The agency has been in a holding pattern since March, however, unable to reward auction winners with licenses or prepare to auction future bands. 

Failing to auction and re-allocate spectrum imposes costs on consumers, who cannot take advantage of next-generation technologies such as improved telemedicine, autonomous vehicles, drones, and smart agriculture solutions. It also harms firms, which cannot offer cutting-edge services without access to specific frequency bands, as well as U.S. competitiveness, as other nations allocate spectrum to attract investment and innovative firms. 

Congress has a path to renewal with the bipartisan Spectrum Auction Reauthorization Act of 2023. The House Energy and Commerce Committee passed the bill, but it has yet to receive a floor vote. I discuss the specifics of the bill here and illustrate why it is a critical first step to ensure the United States remains a leader in telecommunications and technological innovation moving forward.  

I also review previous challenges to renewing spectrum auction authority, including the Department of Defense’s (DOD) objections to the potential re-allocation of the 3.1–3.45 GHz frequency band, a band particularly well suited for 5G wireless communications. Another disagreement is over the length of reauthorization and creation of a spectrum pipeline, a range of frequencies designated for future auctions. 

The Spectrum Auction Reauthorization Act of 2023 attempts to address both concerns. The legislation requires the DOD to release a long-awaited study on the feasibility of moving its capabilities out of, or perhaps sharing the 3.1–3.45 GHz band by the end of September. The legislation would also begin to create a new spectrum pipeline for commercial use by requiring a Department of Commerce feasibility assessment of making two frequency bands available for commercial use in the future.    

This legislation is an important first step in re-asserting the United States’ position as a leader in wireless communication innovation, investment, and governance. Renewing the FCC’s auction authority will help ensure that the United States is no longer “running behind” in the race for next-generation technologies.