Spectrum ‘pay-for’ only the beginning

Tucked away in Monday’s somewhat surprising, largely bipartisan budget legislation, is an important nugget for the future of the American economy: an order for the federal government to identify and sell wireless spectrum now owned, but not used or under used, by the federal government.

“If the current deal is approved, the Department of Commerce would identify 30 megahertz of spectrum — the invisible radio waves that carry information to and from wireless devices — currently controlled by federal agencies that can be opened up and auctioned,” reports The Hill. “Government agencies could then move their activity to different frequencies.” The result would be a win-win for consumers.

{mosads}There is an additional swath of spectrum also singled out for new uses in the legislation. The FCC and the Commerce Department’s National Telecommunications and Information Administration (NTIA) must identify 130 megahertz of spectrum for commercial use. To put that into context, the 2010 National Broadband Plan called for 300 megahertz to be available by 2015 and an additional 200 MHz by 2020. To date, the government has only made 135 megahertz available, or roughly 25 percent of the goal.

So as key leaders central to this issue, such as Senate Commerce Committee Chairman John Thune (R-S.D.), and Rep. Anna Eshoo (D-Calif.), ranking member of the House Subcommittee on Communications and Technology, have stated, the progress is significant, but plenty of work remains. To reach the heights of a potential “5G” world, government leaders must pursue a strategy built upon making more spectrum available, on flexibility between licensed and unlicensed spectrum and on unfettered access to the Internet.

Spectrum is a finite resource. The more than 300 million U.S. wireless subscribers today are likely unaware that their connected life depends upon it, and that it is increasingly spread too thin. While consumers certainly feel the effects of data caps and the high cost of video streaming, I dare say most do not realize the pressure felt by the wireless companies in managing available spectrum during this current “data crunch.” Providers are increasingly having to do more with less, and they are looking for ways to creatively deploy offerings for the licensed bands of spectrum they own.

Congress and the FCC must not only proceed with the plans included in the Spectrum Pipeline Act, but also those in the aforementioned 2010 Broadband Plan. They must advance separate legislation that includes much of the same goals. These include the increasingly popular and bipartisan “Dig Once” proposal, which would pair fixed, wireline broadband deployment with current and future road and highway construction, eliminating the costly alternative of having two underground pipes. Plus there is the separate wireless bill Senator Thune says is in the last stages of drafting.

CTIA, the Wireless Association recently found that, once spectrum is allocated, it takes thirteen years to bring it to market. We must also explore more immediate solutions in addition to sharing spectrum with the federal government: the increased use of unlicensed spectrum. Leading technology and wireless companies have discovered and extensively tested a new technology called “LTE-U,” which would use   unregulated and unlicensed spectrum bands – different than those that are sold – to alleviate congestion and improve speeds. This is similar to, compatible with, and complementary to other unlicensed technologies, such as Wi-Fi and Bluetooth.

But detractors, led by cable companies and Google, are fighting the implementation of LTE-U technology, even as it looks to be a good partner and “neighbor.” Moreover, LTE-U is a solution that can supplement the current efforts in Congress. Legislators and regulators should be wary of such self-serving and disingenuous opposition, and continue to explore any and all methods of freeing more spectrum.

As Wall Street Journal columnist Holman Jenkins recently concluded, “The wireless guys would simply be adding more users to the Wi-Fi spectrum that is constantly adding users, and would have to abide by the same cooperative, noninterference rules as everybody else.” The issue is highly technical, perhaps enabling easier manipulation by LTE-U opponents, but efforts to stifle the technology is pure monopolistic cronyism, facilitated by a cable industry well versed in the practice of blocking competition.

Today’s technology and telecommunications industry continues its ascension as one of America’s top economic sectors. Selling and using these airwaves is more and more akin to opening up and selling U.S. strategic oil reserves. If there is an urgent need, it is incumbent upon the federal government to sell or share unused or underused spectrum. It is in the public interest to do so.

The time is now.

Coursen is founder of The Status Group. He formerly served as Majority Communications Counsel for the Senate Commerce Committee and adviser to the Ronald Reagan and George H.W. Bush administrations.