Wireless Execs Urge Congress to Clear FCC Spectrum Auctions Amid China Threat

A contract crew for Verizon works on a cell tower to update it to handle the new 5G network in Orem, Utah, on Dec. 10, 2019. George Frey/AFP via Getty Images

China’s communist regime is setting itself up to replace the United States as the dominant force in wireless technology, but the U.S. Congress could prevent that with one vote, according to a new report from the Washington-based Center for Strategic and International Studies (CSIS).

The report, titled “Spectrum Allocation for a Contest With China,” contends that if Congress doesn’t reauthorize the Federal Communications Commission (FCC) to auction licenses for the radio band spectrum, the United States may find itself playing catch-up in a field it has so far dominated.

Clete Johnson, a senior fellow at CSIS, said it’s possible that members of Congress don’t comprehend how ubiquitous wireless technology is now and will become in the future.

“It’s not just telephones. Authoritarian regimes like China are well aware of this,” Mr. Johnson said.

He said Congress’s inaction could have economic and national security implications.

Federal Communication Commission Commissioner Jessica Rosenworcel testifies during an oversight hearing to examine the Federal Communications Commission on Capitol Hill in Washington on June 24, 2020. Jonathan Newton-Pool/Getty Images

Mr. Johnson spoke with FCC Chairwoman Jessica Rosenworcel then moderated a panel discussion of wireless industry professionals on July 25. They all agreed that Congress must act quickly if the United States is to remain a leader in wireless technology.

“We’ve benefitted from being in a leadership position. But other countries are following our example,” Ms. Rosenworcel said.

According to the CSIS website, the radio spectrum consists broadly of three elements that are composed of various radio waves and frequencies. Mr. Johnson described the middle range as a “sweet spot” for delivering volume at a desirable speed.

Governments tightly assign and regulate licenses in that range with the highest demand, which prevents users of the spectrum from interfering with one another. Ms. Rosenworcel said that the government assigns licenses in authoritarian regimes such as China.

In the United States, the FCC auctions the licenses and then devotes part of the proceeds to research and development of new technologies. According to the CSIS website, the FCC has raised $250 billion since 1993, with more than half that amount coming from the 2015 auctions alone.

A view of the commission's hearing room before a hearing at the Federal Communications Commission in Washington on Dec. 14, 2017. Brendan Smialowski/AFP via Getty Images

In 2015, 4G technology was at its height, and according to Ms. Rosenworcel, U.S. tech companies licensed by the FCC dominated the world in developing the hardware and software to take advantage of 4G’s speed and reliability.

Canada’s Centre of Excellence in Next Generation Networks (CENGN) describes itself as a “Member Ecosystem comprised of organizations committed to driving technology advancement and growing innovation.” Its website outlines the history of cellphone technology.

According to the website, 5G is expected to have download speeds 20 times faster than those of 4G. Like Ms. Rosenworcel, CENGN said the advancements will be about more than phones.

Ms. Rosenworcel said 5G technology will be all around us, from inventory control sensors in warehouses to cloud computing for the medical field and increasingly in military applications. That is why it’s so important that Congress reauthorize the spectrum allocation auctions.

“What I want is that innovation to take place on American soil with democratic values. Because when we do that, we grow our economy here, but we also export those values to the rest of the world. And I think that makes us stronger, as a matter of both our economy and our national security,” Ms. Rosenworcel said.

National Security Affected

Mr. Johnson said that military applications in the spectrum are getting closer and closer to commercial uses. He said this was emblematic of the principle that economic and national security are linked. It also points up the need for the FCC auctions.

Mr. Johnson and professionals from the wireless industry said that military and industry leaders must work together to get the most from the new technology while preparing for even more significant future advancements.

The wireless professionals said they expect many issues to be resolved at the World Radiocommunications Conference in Dubai, United Arab Emirates, starting in November. The conference is where nations “harmonize” their spectrum allocations so the technology works smoothly across borders.

“China is supporting harmonizing spectrum bands for mid-band, 5G that is; the United States is supporting 80 percent less than China. So China is going to go with a pretty aggressive effort to align the world on its preferred spectrum,” Mr. Johnson said.