Nate Karren: A Spectrum Pipeline on the Horizon

For more than two years, policymakers on both sides of the aisle have debated how to establish a robust system of spectrum identification and reallocation—a spectrum pipeline. But now there is light at the end of the proverbial spectrum-lined tunnel. Sen. Ted Cruz, R-Texas, unveiled legislative language late last Thursday to include a spectrum pipeline as a crucial provision of the Trump-prioritized One Big Beautiful Bill Act currently making its way through a Republican-controlled Congress.

That decision was met with applause by President Donald Trump. Decisive action finally seems imminent, and that’s welcome news to American innovators and consumers.

A spectrum pipeline is crucial for America’s communications future. It will empower innovators to create and improve everyday products and services for consumers nationwide. It will also help America compete abroad and provide a venue for America to re-ascend to global telecommunications leadership status.

Spectrum is the lifeblood of wireless communications networks, but it is scarce by nature. There is only a certain range of airwave frequencies that can carry information, and it grows more crowded year-after-year. Consumer demand doubled every year since 2021, while no new spectrum bands have been added to the market since 2023.

520 megahertz is not enough

This is not enough. Recent projections by Accenture show that America is rapidly approaching a 520 megahertz spectrum shortage as early as 2027, with extreme shortage levels by 2032, where up to 75 percent of demand will go unmet. As demand continues to accelerate, shortages will mean more dropped calls, slower internet speeds, and generally higher prices for lower-quality service. Such a scenario can and should be avoided.

As Sen. Cruz has proposed with his new reconciliation language, Congress should open up more spectrum for commercial use instead. That will give telecom innovators room to experiment and innovate, helping to re-establish American competitiveness in 5G while also taking a positive step toward ushering in promising 6G tech with speeds reaching up to 100 Gigabit per second (Gbps).

On the world stage, more spectrum will contribute to regained American leadership. When Congressional inaction in 2023 halted the addition of spectrum to commercial use, the US fell to lead only three of the 15 leading licensed mid-band spectrum markets in the world, which are critical for 5G and 6G rollout.

Meanwhile, China is primed to add up to 1660 megahertz in licensed mid-band spectrum over the next 5 years—and it will soon boast more than four times more mid-band spectrum than the United States. This would constitute a commanding lead in spectrum and could facilitate a considerable head start on 6G research and development. If the US is to secure its lead, more spectrum is an absolute necessity.

While spectrum reallocation can boost American dominance, critics believe that too much, too fast can be harmful. Federal entities, including the armed forces, for example, hold large swaths of spectrum and argue that losing bandwidth risks severe defense ramifications. The merits of that argument are fiercely debated, but the new legislative language threads the needle and carves out treasured 3.1-3.45 GigaHertz (GHz) and 7.4-8.4 GHz ranges for the Department of Defense while making 800 MHz of spectrum available through the pipeline. That’s a worthwhile compromise that ensures greater consumer well-being while balancing concerns for national security. Still, more can be done—but the perfect should not be the enemy of the good.

Similar standalone bill created 800 megahertz

Last January, ahead of the budget reconciliation bill, Rep. Rick Allen, R-Ga., introduced a similar standalone bill aiming for 2,500 megahertz. But whether Congress creates an 800 megahertz pipeline in the reconciliation bill or sets aside additional spectrum in a standalone bill, it is crucial for American leadership and consumer welfare that they renew a steady stream of spectrum to the private sector, lest we kick the can down the road and find ourselves in a similar spectrum drought in the near future.

After years without Congressional action, it is a relief that a spectrum pipeline is gaining momentum. When scarce spectrum is reallocated for non-federal use, wireless communication networks can scale to meet consumer demand, bringing better quality service at lower prices. At the global level, the U.S. can both catch up to China and retake its former leadership position, deploying innovative new communication technology worldwide. But freeing up the needed spectrum takes time, and these worthwhile goals depend on a reliable schedule for additional spectrum to hit the market.

Whether through budget reconciliation or a standalone bill, a spectrum pipeline should be a high priority for lawmakers this year. President Trump and Congress are right to make it a point of emphasis in reconciliation.

Nate Karren is a policy analyst with the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, follow him on X @ConsumerPal.

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