With this critical spectrum shortage looming, the United States urgently needs to find more spectrum for commercial 5G applications. Since government users are allocated 61 percent of the lower mid-band spectrum (compared to less than 10 percent for licensed commercial users), they find opportunities for full-power license usage tailored for wide area coverage. is needed. To ensure the US has enough spectrum to lead the world in her 5G, effective coexistence mechanisms and possibly even the relocation of federal users to other bands are possible. To protect and advance our national security interests, the United States must reallocate frequencies for commercial use. The need for strategic security to address spectrum scarcity is the lifeblood of the mobile ecosystem and the need for licensed commercial spectrum for wide-area deployment, which is central to the collective and growing demand for ubiquitous high-performance networks. is the most serious.
Reallocation requires planning and coordination and provides funding to advance federal agency missions
Effective reallocation of spectrum requires a consistent government process that provides certainty for new users and supports an orderly transition to incentives and coexistence or transfer of existing users. Certainty drives investment because companies can be confident that the resources they invest in licensed spectrum will not be wasted due to changes in the spectrum’s usage rights.
The United States has a history of successfully reallocating spectrum to use frequency bands more effectively or efficiently. In past reallocations, the U.S. government has (1) made insightful decisions to open spectrum to commercial license use and (2) used revenue from license auctions to financially support transitioning government agencies. (3) with careful coordination between countries, all parties involved have been shown to benefit. Agencies and relevant industry personnel. U.S. government agencies will benefit from equipment upgrades, businesses will benefit from expanded access to spectrum for innovative uses, and Americans will benefit from a more prosperous and innovative economy. This is a well-worn path now needed to protect and advance America’s security interests in the 21st century.
U.S. law has proven statutory tools to ensure that auction proceeds benefit federal agencies that need to move to other frequency bands or upgrade equipment. Almost 20 years ago, Congress passed the Commercial Spectrum Enhancement Act (CSEA), which created the Spectrum Relocation Fund, a mechanism that funds the costs of government agencies moving to new bands or adopting new technologies. (SRF) was founded. The SRF is funded by auction proceeds, guarantees that the proceeds will support federal agency relocation, and CSEA requires that auction proceeds be at least 110% of total estimated relocation costs. requesting. The CSEA also provides certainty for auction winners and streamlines the transfer process for funding agencies, as well as oversight and transparency on how these funds are used. Previously, auction bidders had to negotiate with federal agencies about relocation costs and schedules for relocation from auctioned bands. Currently, federal agencies must provide schedules and estimated costs. Additionally, pursuant to subsequent amendments to the CSEA, these estimated costs may include planning, system upgrades, and research and development costs, and the agency will be paid immediately following the auction. Additionally, these subsequent amendments will create new mechanisms for funding efficiency improvements that enable cooperative coexistence in specific spectrum bands, rather than forcing incumbent operators to relocate to other bands entirely. We provide
History shows that redistribution works when the federal government takes the lead and works with commercial stakeholders. The 2006 Advanced Wireless Services (AWS-1) auction was an overwhelming success due to coordination across 12 federal agencies, including the National Aeronautics and Space Administration and the Departments of Agriculture, Interior, and Energy. With $13.7 billion in revenue and a return on investment of more than 775%, the proceeds easily exceeded his CSEA minimum and provided enough funding for government agencies to upgrade to digital and IP-based communications systems. . The National Telecommunications and Information Administration (NTIA) and the Office of Management and Budget ensured that agencies implemented transition plans and were able to meet unforeseen challenges. In this particular case, relocation costs exceeded the agency’s original estimate by $400 million, but SRF was provided with sufficient funding to cover these unexpected agency costs.
In some other relocation experiences, the initial estimate was actually much higher than the final SRF expenditure required to fund the relocation. For example, in 2014 and 2015, he had revenue of over $41.3 billion, and the AWS-3 auction brought him a return on investment of over 700%. The auction required relocation and coordination with 16 federal agencies and more than 100 different federal wireless systems. Through NTIA leadership and collaboration with commercial stakeholders, the government has overcome challenges such as accommodating federal use of spectrum when relocation would be prohibitive or impossible.Furthermore, the relocation cost after the AWS-3 auction is approximately half NTIA’s original estimate.
Most recently, to advance the rollout of 5G in the United States, the Department of Defense agreed to transition away from the 3.45-3.55 GHz band in 2020 in favor of commercial use. As a result, the US government was paid his $21.8 billion and more than 100 MHz was made available to the auction winners (and US citizens). Implementation is early in the process, with coordination between the private sector and government following a similar path to the AWS bands process, with unique considerations for new joint planning areas and regular use areas. In some cases, this may include coexistence mechanisms that allow certain government systems to remain within the band on the basis of tailored sharing arrangements.
The AWS and 3.45 GHz model shows that collaboration between the private sector and government can generate mutual benefits. Federal agencies, including the Department of Defense, can maintain critical operations and in many cases upgrade or otherwise advance them, while commercial providers build out their 5G networks across the country and leverage America’s technological leadership. can be promoted globally.
Orderly redistribution requires consistent government processes
The United States needs a consistent government process for reallocation to ensure that spectrum is used to best advance America’s economic and national security interests. It is important that the two U.S. government frequency regulators (Federal Communications Commission (FCC) for commercial frequencies and NTIA for federal frequencies) are the final decision makers, and NTIA represents the interests of the federal government. should act as a central authority. When various government agencies are not on the same page, deployments can be delayed, government and private resources are needlessly expended, and allocation decisions that affect the U.S. economy and national security can be hampered. there is.
First and most fundamentally, Congress needs to restore the FCC’s spectrum auction authority. This is a breakthrough approach to efficient frequency allocation that won the Nobel Prize in Economics for the economist who developed the concept. In March, Congress authorized the FCC to auction off spectrum expirations for the first time since it was first authorized 30 years ago. Without this general authority, the FCC would not be able to schedule the auctions needed to overcome the U.S. spectrum shortage. As long as this failure continues, there will be an insurmountable hurdle to catching up with China in allocating valuable 5G spectrum. While the United States lacks a mechanism to allocate spectrum, China will continue to push 5G along the rollout path set by its authoritarian government, with global technological dominance in mind. In the short term, as FCC Chairwoman Jessica Rosenworcel recently pointed out in Congressional testimony, if the U.S. negotiating team enters the October WRC without auction authority, it could be on the table this year. It would also undermine US credibility on the issue and in the negotiations. To set the agenda for WRC 2027.
Second, as the federal government’s C-band shutdown process demonstrated, a fragmented process can create confusion and delay the rollout of 5G services. The C-band auction attracted record numbers, with wireless providers paying more than $80 billion in license fees in total. But disagreements within the federal government, including questions about safety issues from the Federal Aviation Administration despite approval from the FCC and NTIA, delayed the launch of 5G. The Intergovernmental Radio Advisory Committee (IRAC) is comprised of representatives from federal agencies with spectrum interests who assist NTIA in managing federal spectrum use and ensure consistent and unified federal spectrum policy. It is an essential tool for formulating. IRAC plays a critical role in advising NTIA on government interests and disseminating information across affected government agencies in connection with the FCC’s proceedings regarding the commercial use of spectrum. These interagency processes are critical to U.S. leadership in 5G. After years of efforts across government agencies and their regulated industries, wireless companies are now required to operate with temporary and minimal restrictions while the airline industry grapples with concerns about aging aircraft equipment. Masu. Still, these delays reinforce the importance of NTIA serving as the executive branch’s voice in making recommendations to the FCC regarding commercial spectrum.
Third, stakeholders need to work together to make spectrum reallocation work. In the wireless world, there needs to be room for spectrum allocation to take advantage of technological innovation. Reallocation is a win-win when existing users are provided with the resources to succeed and new users are provided with the certainty and scope they need to innovate and implement new uses. Every reallocation, bandwidth, and system is different, so the process shouldn’t be rigid. Redistribution is guided to benefit all parties, as long as all parties come to the table transparently and with the goal of advancing mutual benefit and U.S. interests, rather than a zero-sum game with clear losers and winners. and can be organized.
5G commercially licensed spectrum is essential to U.S. national security
Will the future consist of freedom and innovation fostered by market democracies like the United States and its allies, or surveillance and control imposed by authoritarian governments like China? • The United States’ role in advancing commercial wireless communications, particularly 5G, the most secure wireless communications technology in history, will be central to answering that question. Ubiquitous connectivity in the 5G era will become a key area of national security for both market democracies and authoritarian states in the 21st century.
When harnessed for dynamism and innovation rather than authoritarian command and control, 5G wireless connectivity is the foundation for solutions to the world’s most pressing challenges. In contrast, social control and information manipulation resulting from the abuse of ubiquitous connectivity are essential to dictators’ ambitions for global influence and domestic power through control of natural resources, technology supply chains, and information.
Advances in U.S. technology and security interests will require more mid-band spectrum for licensed commercial use in 5G, which will require reallocation of government spectrum. To achieve this security imperative, the United States needs consistent government processes and carefully planned transitions with industry. Experience has shown that this is difficult and fraught with obstacles, but it also shows that it is very possible and beneficial on many levels to all stakeholders involved. It is in the core national interests of the United States to take these steps quickly.
Clete Johnson is a senior fellow in the Strategic Technology Program at the Center for Strategic and International Studies in Washington, DC.
This report is made possible with the support of CTIA and its member companies.
