Strand Consult warned that 2023 will be a “wild, uncomfortable year,” with the upheaval ahead having big implications for the mobile wireless industry. “There is war in Europe, a global energy crisis, and inflation which has made almost everything more expensive and disrupted many financial markets. China’s menace in Taiwan puts the world’s leaders on edge and imperils the supply of 90 percent of the world’s semiconductor manufacturing,” CEO John Strand blogged Thursday: “Board leaders and directors should ask themselves what is their plan [in the] case of China shutting down supply lines tomorrow.” He warned of implications for wireless. “Rising interest rates depress returns on capital, and investors' willingness to invest in infrastructure,” Strand said. “Relationships with authoritarian governments pose reputational risks,” it said: “An operator can’t stick its head into the ground and pretend nothing is happening. Indeed operators which have opted out of Huawei and ZTE will gain an advantage over those which claim that there are no risks to using Chinese network equipment. … This message will resonate with policymakers, customers, and shareholders.” Strand also noted many questions about spectrum, with Congress failing to reauthorize FCC auction authority beyond a three-month extension. “It’s hard to contemplate a modern nation being so irresponsible,” he said. “It is remarkable that the US has achieved such incredible wireless success to date given the limited access to frequencies. But to compete with China in the future, the US will need a more aggressive approach to making mid-band spectrum available for exclusive licensed use,” he said.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
The Senate appeared poised to pass as soon as Wednesday an FY 2023 appropriations omnibus package that includes another short-term extension of the FCC’s spectrum auction authority, though the situation remained fluid late that afternoon amid continued wrangling over potential votes on amendments to the measure. Lawmakers agreed to attach a renewal the FCC’s remit through March 9, after an objection from Sen. Mike Rounds, R-S.D., derailed a negotiated deal to include a modified version of the chamber's version of the Spectrum Innovation Act (S-4117) and other related measures (see 2212200077).
All four FCC commissioners expressed support Wednesday for proposed rules to more precisely route wireless 911 calls and texts to public safety answering points through location-based routing (LBR). The NPRM wasn’t controversial while before commissioners, though industry is expected to weigh in during the comment period (see 2212200064).
FCC commissioners and panelists at the Practising Law Institute’s Institute on Telecommunications Policy & Regulation Thursday outlined expectations for 2023 involving employment data collection, enforcement and the USF, but many speakers were focused on cyber and national security, such as compromised apps and obsolete devices. “It’s time to turn our attention to the millions of wireless devices in our country that are insecure,” said Commissioner Nathan Simington. “There’s an industry-wide acquiescence to careless practices.”
Senate Commerce Committee leaders hadn’t resolved a longstanding disagreement Thursday night over how hoped-for compromise spectrum legislative language would structure repurposing parts of the 3.1-3.45 GHz band for commercial 5G use, a hurdle that could derail a bid to attach the proposal to an FY 2023 omnibus appropriations measure (see 2212070068). Those leaders made progress on some parts of the measure, including moving closer on amounts of spectrum auction revenue they will allocate to fully fund the FCC’s Secure and Trusted Communications Networks Reimbursement Program and finance next-generation 911 tech upgrades.
Senate Communications Subcommittee members from both parties targeted FCC and NTIA implementation of connectivity programs created in the Infrastructure Investment and Jobs Act and COVID-19 aid measures Tuesday, as expected (see 2212120064), including concerns about deficient data the commission used to develop its new broadband maps. Lawmakers also touched on other telecom policymaking matters they hope Capitol Hill can address during the lame-duck session or in the next Congress. Senate Commerce Committee leaders saw a potential one-week extension of their talks on one lame-duck priority, a compromise spectrum legislative package (see 2212070068), appear via a proposed continuing resolution to fund the federal government past Friday.
House Communications Subcommittee leaders are monitoring from afar Senate Commerce Committee negotiations on a potential compromise spectrum measure with an eye on the legislative clock as they question if a viable alternative to the existing Spectrum Innovation Act (HR-7624) is achievable amid the jam-packed lame-duck session. Fraught talks are underway aimed at reaching a deal on an FY 2023 appropriations omnibus package seen as a potential vehicle for passing spectrum legislation and allocating new funding for two bipartisan telecom priorities: the FCC’s Secure and Trusted Communications Networks Reimbursement Program and next-generation 911 tech upgrades. Hill leaders released a compromise version of the FY 2023 National Defense Authorization Act Tuesday without language authorizing funding for the telecom priorities (see 2212070056).
UScellular representatives discussed its C-band deployment plans and discussions with the FAA, warning against delays, in calls with FCC Wireless Bureau and Office of Engineering and Technology staff. “UScellular emphasized the importance of being able to deploy this spectrum in a timely manner to help cure the digital divide in rural areas,” said a filing posted Monday in docket 18-122: “UScellular recommended that the FCC reject calls for modifications to its C-band rules, as changes at this stage will certainly cause deployment delays despite making progress with the FAA, harming Americans who need 5G service the most.” The carrier bid $1.3 billion in the auction, which ended last year (see 2102180041).
A new study by CTIA and Recon Analytics questions whether citizens broadband radio service spectrum, often cited as the potential sharing model of the future, is a suitable replacement for exclusive, licensed spectrum. Meanwhile, the Biden administration is moving on release of a national spectrum strategy (see 2209260048). Carriers already said they hope the strategy will lay out bands that can be cleared for licensed use. Wi-Fi advocates fired back.
Senate Commerce Committee Chair Maria Cantwell, D-Wash., and ranking member Roger Wicker, R-Miss., are believed to be readying separate proposals for a larger spectrum legislative package as Congress returns this week from the long pre-election recess. The bills would grapple with how to address a renewal of the FCC’s auction authority before a short-term extension expires Dec. 16, among other things. CTIA Senior Vice President-Regulatory Affairs Scott Bergmann and others cited the FCC renewal as the priority lawmakers should focus on as they grapple with whether to move forward on the House-passed Spectrum Innovation Act (HR-7624) or another measure as a compromise vehicle, during a Monday R Street Institute event.