Last Minute Rent Seeking Tries to Upend FCC Spectrum Win

No more than a few weeks out from the December holiday festivities, policy advocates and innovators across the country now have another reason to celebrate. Today, the Federal Communications Commission (FCC) kicked off its auction of C-band spectrum. This particular band of spectrum is viewed as the most critical for deployment of fifth generation (5G) wireless services and ensuring consumers have 5G access from their homes.

Naturally, this is a huge step for American leadership in 5G across the globe. This is critically important, as there are worries that the Chinese may corner the global market first, a development that would carry steep consequences.

Liberating C-band spectrum will also have sweeping benefits here at home. This spectrum can help close the digital divide between those with broadband access and those who have relatively little connectivity. This is always a worthy goal, but especially so during a time where our digital infrastructure is facing unprecedented demand due to the global pandemic.

However, instead of rejoicing at this welcome news, many in Washington special interest spheres are launching last-ditch efforts to stifle the auction and the benefits it will bring. A coalition of aviation interest groups are claiming this new spectrum being used for 5G developments will interfere with the electronics on aircrafts and potentially lead to more frequent plane crashes. This is shameless fear-mongering and rent-seeking behavior.

On the eve of the auction, these special interest groups tried to extract concessions or monetary gains from mobile carriers and the FCC in order to drop their objections. Sadly, this is nothing new in Washington. These same underhanded tactics were used to try and stop the liberation of spectrum in the L-band as well. Just as it was then, the case against spectrum advancement is built on misinformation.

Not only is the FCC not disregarding aviation interest, but they are, in fact, granting them more concessions than in most other developed nations. The FCC has left more of a buffer between the spectrum intended for 5G and that for altimeters with the expressed intent of preventing interference. The FCC has consulted with numerous experts and has the in-house expertise needed to make sure their auction strikes the right balance. That is why this process has taken as long as it has.

Instead of gratitude for the consideration they’ve received, special interests cannot help but jump at an opportunity to extract undue gains from the situation. This effort cannot be allowed to succeed. If it does, it will incentivize future rent-seeking and hamper any and all future efforts to liberate spectrum and develop next generation technology.

The C-band auction today is – on the other hand – a decisive win for taxpayers, helping to deliver internet speeds potentially up to ten times faster than 4G. It will also eliminate the necessity of pricey infrastructure. This means that consumers across the nation will have access to more affordable internet of a vastly higher quality. It will also alleviate the tax burden of wasteful government-owned and operated networks that cost millions and serve relatively few.

Chairman Ajit Pai – along with the rest of the Commission – have taken action in this area to empower the market and deliver better internet without spending taxpayer money. This is a victory for Americans of all stripes.ti