From logging on to your preferred news app to using a wireless tablet to follow a recipe for dinner, spectrum powers so many aspects of life’s wireless moments. What we often don’t consider during our daily tasks, assisted by wireless, is how spectrum is actually made available. As this process has evolved over the years, we thought it would be beneficial to look at the past, present, and future of spectrum allocation:

A Glance into The Past:

Allocating spectrum to specific users allows wireless service providers to keep up with demand and their ability to provide high-speed, reliable service to meet America’s wireless needs. The process of allocating spectrum has been around since before the existence of smartphones, putting into perspective how significantly America’s spectrum needs have skyrocketed. The process has been refined over the years; however, the Federal Communications Commission (FCC) has successfully used spectrum auctions since its first in 1994.

Prior to 1982, and before the FCC received auction authority, spectrum allocation was decided using comparative hearings. This process “allowed regulators to decide which applicant would put the spectrum to its best use.” Although this system sounds good in theory, the process was far from objective. In 1982, in an effort to further evolve the spectrum allocation process, the FCC started using lotteries. While this was a quicker process, winners of spectrum allocations were able to resell their licenses. This introduced issues stemming from thousands of applicants, who were not all wireless service providers, vying for a small number of spectrum licenses. As a result, when “real wireless operators” didn’t win, they were forced “to negotiate and buy licenses from these speculators,” wasting economic resources, a cost that could potentially be passed along to us as cellphone users.

In 1993, the current spectrum allocation process was introduced, giving the FCC auction authority. A year later, in 1994, the commission held its first auction, leading the way in spectrum allocation globally. While the effort to move from the old lottery-based system to the newer auction model wasn’t without its challenges, this process proved to be a worthwhile endeavor. The process turned into to a Nobel-winning idea that has generated hundreds of billions of dollars and been adopted by more than 100 countries around the world. At the time, then FCC Chairman Hundt noted, “wireless phones will no longer be a status symbol of the rich and famous,” and auction policy has met – and arguably, exceeded – the expectations of putting wireless technology within reach of all Americans.

The Here and Now:

The FCC’s spectrum auction authority has allowed the U.S. to be at the forefront of innovation and global leadership in wireless, however, last year, Congress let that authority lapse. The U.S. is facing a spectrum deficit, while simultaneously, wireless is in higher demand than ever. Additionally, there is not a viable pipeline of spectrum to auction. If Congress does not act, we will begin to see negative impacts on investment, innovation, and national security, ultimately putting the U.S. at a disadvantage globally.

The Path Forward: 

Potential good news is on the horizon. Earlier this year, Senators Cruz and Thune sponsored the Spectrum Pipeline Act of 2024. This bill proposes the renewal of the “FCC’s auction authority, gives the National Telecommunications and Information Administration (NTIA) direction to identify and auction a specific amount of full-powered, commercial licensed spectrum, and sets a defined timeline for action.” We applaud this legislation as a good first step in renewing much needed auction authority and creating a pipeline of spectrum.

Whichever legislative vehicle creates a path forward, it is important that we don’t lose sight of America’s leadership and innovation over the past 30 years. It’s equally important to ensure that the next 30 years, with full auction authority and a pipeline of exclusively licensed spectrum, positions America for success in our wireless future.