Lopez is president of the Hispanic Leadership Fund, a public policy advocacy organization that promotes liberty, opportunity and prosperity for all Americans.
While it may not get the dramatic headlines that other topics garner, few public policy issues will affect the future of our country the way telecommunications infrastructure will, specifically considering the current regulatory path for 5G and wireless spectrum.
How American policymakers handle spectrum will affect national security and American economic international competitiveness now and for decades to come. Economic growth, entrepreneurship, upward mobility, innovation, education and health care are among the areas that are and will be impacted.
That is because spectrum — the radio frequencies that transmit information wirelessly — is the foundation necessary to ensure that American consumers have access to reliable and affordable high-speed internet. And in our increasingly connected world, access to spectrum has a direct bearing on economic activity across vital industries.
American security and international status come into play because our economic competitors understand the crucial role that spectrum plays and are already relying on its use to be a key factor in commerce. Political leaders of all persuasions talk about ensuring that the United States leads the world’s economy — in particular over China, a country that many see becoming progressively adversarial toward us.
There is spectrum to be had, but it needs to be made available. Historically, the Federal Communications Commission, which controls access to and use of the various spectrum bands for non-federal users, had authority to auction licenses. That authority expired over a year ago, and Congress needs to move on reauthorizing it.
The good news is that the spectrum auctions have been a Nobel-worthy approach that has been beneficial to taxpayers, bringing in more than $233 billion to the U.S. treasury, paid by wireless companies via the auctions. All companies can participate, including new entrants in the market. That increased competition among providers yields lower broadband prices for consumers.
Recently introduced legislation in the Senate, the Spectrum Pipeline Act of 2024, would in part reestablish the FCC’s auction authority — a necessary first step.
Along with auction reauthorization, the bill acknowledges the role of mid-band spectrum, which works well for 5G applications due to its combination of capacity and range. The National Telecommunications and Information Administration would be directed to identify at least 2,500 megahertz of mid-band spectrum that can be reallocated from federal to non-federal use.
Wireless industry association leaders project that in just three years, China will have nearly quadruple more licensed mid-band spectrum for commercial purposes than the United States. That analysis also shows that the U.S. is lagging behind countries like France, Japan, the United Kingdom and South Korea. In fact, the U.S. is currently ranked 13th in the world for assigned licensed mid-band mobile spectrum according to research from IT and technology consulting firm Accenture.
In addition to the wider issue of global competitiveness, there are the practical, everyday economic benefits for Americans in modernizing our spectrum policy that only increase the significance to moving spectrum policy forward. By now most Americans have an intuitive understanding of how they benefit from internet connectivity.
Those benefits still need to be expanded to parts of the population, however. The gap in access to communication technologies hurts millions of underserved communities. That is known as the digital divide — and wireless access is an essential component to addressing that disparity. For example, data from Pew Research Center shows that 20 percent of the Hispanic population relies solely on smartphones for access to broadband for internet connectivity. Other communities face similar circumstances.
Ensuring that access is an important component for improving prospects for economic opportunity.
The tangible role of the internet to education, a cornerstone for individual success, is evident. Improved internet access allows students to access online educational resources, participate in remote learning and engage in e-learning platforms. This helps level the playing field and ensures that individuals from all socioeconomic backgrounds have equal access to educational opportunities, enabling them to acquire the skills necessary for better career prospects.
The rise in Fixed Wireless Access, which uses wireless broadband for home and business internet, has been a positive development in this regard. FWA can continue to be one way for more people to enjoy broadband for the first time than before. But providers can only offer 5G FWA in areas where there is enough spectrum and network capability.
Policymakers need to understand the magnitude of wireless spectrum policy, and its ramifications for Americans, both as individuals in pursuit of social and economic advancement and for the country’s national security and standing. The costs of not doing so would be a significant, and lasting, setback on all these fronts.
