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Senate Appropriations Subcommittee Tackles Question of Public Versus Private Auction of C-Band Spectrum

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Photo of Sen. Kennedy courtesy the senator's office

WASHINGTON, October 17, 2019 – A Senate Appropriations subcommittee focused questions at a Thursday hearing on the Federal Communication Commission’s spectrum auctions on the dynamics of a public versus private auction of the C-Band.

Financial Services Subcommittee Chairman John Kennedy, R-La., expressed his preference for a public auction. In particular, he argued that foreign companies shouldn’t reap the benefits of American innovation.

FCC Chairman Ajit Pai was the lead witness, and he advocated for a “market-based approach” is the best way to make spectrum more available for 5G.

Mid-band spectrum – which includes the C-Band primarily under discussion — combine good coverage with good capacity, Pai said. That’s one reason why the agency is planning to use dynamic spectrum sharing within the C-Band, which will operate at between 3.7 GigaHertz (GHz) and 4.2 GHz.

Pai explained that spectrum sharing allows federal and non-federal users to coexist within the same band, with each group possessing protection from harmful interference.

Because existing spectrum licenses cover barely half of the country, Pai said, the FCC can and should do more to allow broadband wireless service in more locations.

The biggest concern about 5G, said Kennedy, is that it may this next generation of wireless technology might not be widely deployed in suburban and rural communities. That’s why the Louisiana senator said that the FCC needed to allocate C-Band spectrum in such a way that rural Americans weren’t left behind, he said.

Another concern about the auction, said Sen. John Boozman, R-Ark., is how to ensure liability if licensed spectrum service is interrupted by unlicensed users. He said that public auction would help hold these parties accountable.

Also testifying was Tom Schatz, president at Citizens Against Government Waste, and David Williams, President at Taxpayers Protection Alliance. They argued that a public auction is the most profitable and equitable option for American taxpayers.

Williams criticized the intentions of the C-Band Alliance, calling it a “taxpayer rip-off.” He said its members have been evasive with the contents of their proposal and how much money will be returned to the U.S. Treasury.

There’s no way of knowing who’s going to get the spectrum in a private auction, Williams said. The FCC will be involved regardless of what type of auction it is, so it makes more sense to host an auction that will be more beneficial to taxpayers, he said.

An auction with strong FCC oversight would make sure spectrum is properly allocated, added Schatz. The CBA, on the other hand, has only mentioned their intents to sell the spectrum.

With the normal FCC auction process, he said, proceeds would go to taxpayers and incumbent users of the spectrum would be protected. A private sale conducted by a small group of satellite companies would raise questions about their ability to sell something that they do not own.

Because airwaves are a public resource, Schatz added, it’s the federal government’s responsibility to exercise appropriate oversight of its allocation. A public auction offers both transparency and equal opportunity, he said.

Digital Inclusion

CES 2023: Congressional Oversight, Digital Equity Priorities for New Mexico Senator

Sen. Lujan once again voiced concern that the FCC’s national broadband map contains major inaccuracies.

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Photo of Sen. Ben Ray Lujan, D-N.M., in February 2018 by Keith Mellnick used with permission

LAS VEGAS, January 6, 2023 – Sen. Ben Ray Lujan on Friday endorsed “oversight at every level” of executive agencies’ broadband policies and decried service providers that perpetuate digital inequities.

Lujan appeared before an audience at the Consumer Electronics Show with Sen. Mark Warner, D-Va., and Sen. Jacky Rosen, D-Nev., to preview the tech-policy priorities of the 118th Congress.

Among Washington legislators, Senators had CES 2023 to themselves: Representatives from the House of Representatives were stuck in Washington participating on Friday in the 12th, 13th and 14th votes for House Speaker.

Congress allocated $65 billion to broadband projects in the Infrastructure Investment and Jobs Act of 2021, the bulk of which, housed in the $42.45 billion Broadband Equity, Access, and Deployment program, is yet to be disbursed. The IIJA funds are primarily for infrastructure, but billions are also available for digital equity and affordability projects.

Several federal legislators, including Sen. John Thune, R-S.D., have called for close supervision of Washington’s multitude of broadband-related programs. At CES on Friday, Warner argued that previous tranches of broadband funding have been poorly administered, and Lujan once again voiced concern that the Federal Communications Commission’s national broadband map, whose data will be used to allocate BEAD funds, contains major inaccuracies.

Affordable, high-speed broadband is now a necessity, stated Warner. Lujan argued that policy must crafted to ensure all communities have access to connectivity.

“The [Federal Communications Commission] is working on some of the digital equity definitions right now…. I don’t want to see definitions that create loopholes that people can hide behind to not connect communities,” the New Mexico senator said, emphasizing the importance of “the digital literacy to be able take advantage of what this new connection means, so that people can take advantage of what I saw today [at CES].”

At a Senate hearing in December, Lujan grilled executives from industry trade associations over allegations of digital discrimination.

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Infrastructure

Regulatory Barriers Could Hinder Broadband Deployment, Senate Hearing Panelists Say

Panelists sought streamlined permitting processes on federal lands and in local communities, and reasonably priced pole access.

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Screenshot of Michael Powell, president and CEO of NCTA – The Internet & Television Association

WASHINGTON, December 13, 2022 – Onerous permitting regimes and other regulatory barriers could significantly hamper broadband deployment projects, executives from leading trade groups told the Senate Subcommittee on Communications, Media, and Broadband on Tuesday.

Preparing to monitor the administrative state’s distribution of the largest American broadband investment to date, the subcommittee’s members asked the witness panel how government can facilitate the effective deployment of funds. The largest slice is the $42.5 Broadband Equity, Access, and Deployment program, managed by the National Telecommunications and Information Administration.

Michael Powell, president and CEO of NCTA – The Internet & Television Association and former chairman of the Federal Communications Commission, advocated streamlining permitting processes on federal lands and in local communities as well as ensuring reasonably priced pole access for broadband providers. Powell argued that entities exempt from federal pole-attachment rate regulations – which include cooperatives and municipalities – are incentivized to raise prices to ward off potential competitors in the broadband market.

Often, on federal lands, multiple agencies will claim the permitting authority, Powell said. Federal permitting fees are often exorbitant, he continued, and navigating these processes can “add years and years to a (company’s) commitment to build.

“These kinds of programs always have a tendency to attract layered-on regulatory requirements that are tangential to the mission of the program,” Powell said. “The consequence of that is it creates more complexity, additional burden, and raises the cost of an already fragile cost model.”

Congress should make broadband grants non-taxable, said Jonathan Spalter, president and CEO of US Telecom. The Broadband Grant Tax Treatment Act would do so for Infrastructure, Investment and Jobs Act and American Rescue Plan Act grants. According to some on Capitol Hill, Congress may pass the bill by year’s end.

Powell and Spalter argued that poor communication between the myriad agencies that oversee federal broadband initiatives obscures which eligible areas have already received federal funding – to the detriment of industry players. “One of the challenges for regulators is to ruthlessly attempt to harmonize criteria…across these programs and make sure all take cognizance of the other[s] as they make their decisions,” Powell said.

Spalter suggested a certification process through which agencies would be required to confirm that new grants are not issued to already-funded locations. Panelists and senators voiced concerns about redundantly allocated federal funds at several points in the hearing.

Lujan on Build America, Buy America and workforce issues

The NTIA’s guidelines for the BEAD program mandate compliance with the Build America, Buy America Act, which favors domestic manufacturing and, according to many experts, raises prices on goods necessary for broadband deployment. In response to economic pressures, the NTIA proposed waiving this requirement for the Middle Mile grant program, and many have urged the agency to institute a waiver for the BEAD program.

“We should always strive to encourage more manufacturing here in the United States with both onshoring and near-shoring,” subcommittee Chairman Ben Ray Lujan, D-N.M., told Broadband Breakfast after the hearing. “Democratic and Republican members have pushed for and have fought for the inclusion of equipment made in America,” he added.

Some have also criticized the NTIA’s worker-related policies, which, they say, will artificially drive up the cost of labor and network deployments. “The rules that are being applied by NTIA reflect the importance of having people…work in a way that they’re able to take care of themselves as well,” Lujan said. He further called on Congress to address potential workforce shortages – a concern of many industry players.

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Senate

National 6G Strategy Bill Passes Senate Commerce Committee

The Next Generation Telecommunications Act received bipartisan support.

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Photo of Sen. Catherine Cortez Masto by Senate Democrats, via Wikimedia

WASHINGTON, March 22, 2022 – Legislation that would create a council to advise Congress on 6G and other wireless technologies and how they may power smart cities on Tuesday passed the Senate’s Commerce, Science and Transportation committee with bipartisan support.

In addition to advising Congress on the state of technology in the telecommunications industry, the council would also develop a comprehensive, national telecom strategy, which will address topics related to technology, workforce demands and security.

The bill, Next Generation Telecommunications Act, S.3014,was introduced by Sen. Catherine Cortez Masto, D-Nev., who said in a press release that the legislation is a key part of her state’s goal of being “on the cutting edge of new technologies.

“We’ve got to promote American competitiveness in these kind of cutting-edge technologies that we’re building in Nevada,” Cortze Masto said in a statement on the bill. “That means improving access to quality broadband, ensuring we have the necessary workforce, and putting in safeguards to make sure we protect emerging technologies.”

The council would be comprised of 15 members including the deputy secretary of Commerce, the assistant secretary of Commerce for Communications and Information, the undersecretary of the National Institute of Standards, the chairperson of the Federal Communications Commission, and the director of the National Science Foundation.

The council would also feature three members appointed by the majority leader of the Senate, two members appointed by the minority leader of the Senate, three members appointed by the Speaker of the House, and two members appointed by the minority leader of the House.

The bill has received notable bipartisan support: it is co-sponsored by two Republicans and two additional Democrats, including Sen. Chuck Schumer, D-N.Y., and Sen. Ben Luján, D-N.M.

“As China and other countries seek to exploit communications networks for surveillance and intellectual property theft, the U.S. needs a cohesive strategy for the safe deployment of next-generation wireless technologies,” said Sen. Roger Wicker, R-Miss.

South Dakota senator and Senate Republican minority whip John Thune also came out in support of the bill. “This bill would allow the United States to continue competing on the global stage, and it would help prepare the United States to lead the way in deploying next-generation technology, including 6G. I’ll continue to work on bipartisan solutions that will increase innovation and bolster the private sector’s ability to compete in this emerging space.”

The bill must now get through a general vote in the Senate, at which point it will need to also pass the House.

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