AT&T Hoping for More Spectrum, Fewer State Rate Laws

WASHINGTON, Jan. 16, 2025 – At the top of AT&T’s telecom policy wishlist are: Restoration of the Federal Communications Commission’s spectrum auction authority and opposition to more broadband affordability laws like the one in New York State.

The FCC’s ability to sell off airwaves expired in March 2023 amid concerns over opening up the lower 3 GigaHertz band, occupied by the military but coveted by the 5G industry. But the lapse has also stalled the pipeline of airwaves generally, something wireless carriers are eager to see reversed as customers become more data-hungry.

“The private sector cannot acquire the spectrum it needs in the U.S. until Congress reauthorizes the FCC to conduct auctions and the government allocates more full-power mid-band spectrum for licensed commercial use,” AT&T’s executive vice president of federal regulatory relations Rhonda Johnson wrote in a blog post Wednesday. “Without auctions and a pipeline, the American people get left behind and American leaders get left with no leverage to negotiate internationally.”

That’s something both Republicans and Democrats are aligned with the mobile carriers on, but the 5G industry is likely a bit happier to see the GOP in control of Congress. Senate Majority Leader John Thune, R-S.D., and Sen. Ted Cruz, R-Texas, head of the Senate Commerce Committee, once introduced a bill aimed at restoring the FCC’s auction authority that would mandate more airwaves sold off for licensed use than a rival Democratic version.

Both of those bills stalled last year, but Cruz has signaled support for getting spectrum auction authority in the budget reconciliation bill Republicans are crafting for later this year. He told Punchbowl News it was his top tech policy priority for reconciliation, a process that will allow the GOP to push through budget-related legislation with its slim Senate majority. 

The FCC will have the chance to re-auction licenses handed back by Dish in the near future, but that was a one-off provision to pay for the effort to swap Chinese gear out of smaller networks. FCC Chairwoman Jessica Rosenworcel circulated proposed rules for that auction last week.

The National Telecommunications and Information Administration is also still working on a Biden administration plan to study nearly 2,800 megahertz of government airwaves for potential repurposing, which might tee up some of the spectrum in future FCC auctions. 

Affordability laws

AT&T is also looking to dissuade states from instituting broadband affordability laws like one that went into effect in New York on Wednesday— the only one of its kind so far. The state’s Affordable Broadband Act – which requires $20 per month plans for low-income households, or less for lower speeds – survived a yearslong legal challenge from industry groups, with the Supreme Court declining to hear ISPs’ appeal.

The company said it’s pulling its Internet Air service, wireless home internet provided via excess 5G capacity, in New York because of the law. AT&T has 477,000 Internet Air subscribers nationally.

“New York’s broadband law imposes harmful rate regulations that make it uneconomical for AT&T to invest in and expand our broadband infrastructure in the state,” a company spokesperson said. “We will continue to support policies that promote capital investment, innovation and a competitive market.”

Customers can stay on the service for up to 45 days from Jan. 15 at no charge and will receive a recovery kit with instructions on returning their equipment, according to the company.

AT&T is not one of the major fixed broadband providers in New York—the company’s 28 million fiber passings and legacy copper networks are all outside the state—but the message was clear to states where it’s a bigger player.

In their effort to obtain Supreme Court review, broadband trade groups said justices should take the case in part because “if the ABA were to take effect, it would be a watershed moment. Many state legislators and bureaucrats would surely then follow New York’s lead.”