Licensed spectrum powers your cellphone. Think of it as “private property,” in the air that helps connect calls, stream videos, and send text messages. You might be surprised to learn, however, that the largest owner of licensed spectrum is not your wireless carrier. It’s the government. In fact, roughly 60% of mid-band spectrum bands are under government control.

Privately held spectrum, not government owned spectrum, is what powers our streaming, scrolling, and swiping. But today’s mobile networks are getting squeezed. It’s like trying to funnel rush hour traffic into a one-lane road. The system just can’t keep up.

To say the demand for wireless data is increasing is an understatement. Data demand is skyrocketing, and we are facing a spectrum shortfall. A recent study from Accenture indicates that 23% of peak 5G demand will not be met by 2027 without more licensed spectrum. That means we can expect slower speeds, more dropped calls, and longer loading times. More spectrum is key to success.

What’s the “Spectrum Deal”?

Senator Ted Cruz and President Donald Trump have teamed up to push a major change. They want Congress to give the Federal Communications Commission (FCC) authority to auction off roughly 800 MHz of new spectrum through 2034. That includes releasing about 500 MHz now held by the government.

As for the benefits of the deal, a recent article by the Wall Street Journal’s editorial board notes:

“Republican leaders expect the auctions to generate $85 billion in revenue for the government over 10 years, but they will yield broader economic benefits. More spectrum in private hands will undoubtedly make internet faster and could reduce the cost of data plans. It could also help mobile providers compete with cable companies in fixed broadband.

Broader deployment of self-driving cars will require loads more spectrum since remote overseers must be able to seize control of a vehicle instantaneously to avoid a collision. A little latency isn’t a big problem when streaming a movie, but it could have life and death consequences on the road.

More spectrum will also facilitate more innovation in artificial intelligence. It could support more drones that assist with law enforcement, inspect infrastructure such as transmission lines and railroad tracks, and deliver groceries. The sky of spectrum uses has no limit. . . . Well done.”

To summarize:

• $85 billion in revenue for the government with broader economic benefits
• Faster internet
• Less expensive data plans
• Increased choice in broadband providers – cut the cord!
• Broader deployment of self-driving cars
• More innovation in artificial intelligence (AI)

And that’s just the beginning. This “Spectrum Deal,” which creates the largest spectrum pipeline in history, will have an historic impact on everyday Americans’ lives. From bridging the digital divide to keeping us connected. From creating jobs to competing with China. From supporting current technologies to creating new ones. It’s time for Congress to pass the deal.