Congressional hearings this week will take up the need for more wireless spectrum鈥攖he invisible radio frequencies that transmit information to and from mobile devices. Auctioning government spectrum to fulfill this need would not only provide significant revenue for the Treasury; it would also greatly benefit data-hungry American consumers. And because these auctions take years to prepare and implement, now is the time to begin the work.
The U.S. leads the world in the deployment of 4G wireless technologies, and this country has the world鈥檚 most efficient networks. Private investment in mobile infrastructure鈥攏early $32 billion last year鈥攊s more than 50% higher than in Europe, and investment is up more than 60% since 2009. But as the great majority of consumers upgrade to smartphones, tablets, wearables and other connected devices, including the budding 鈥淚nternet of things,鈥� the demand for more spectrum, or bandwidth, is on a rapid pace to exceed supply.
Mobile data traffic in the U.S. will grow between 2014 and 2019, according to CTIA, the wireless industry association. During the same period the number of wearable and connected devices in the U.S. will double.
Congress has helped keep up with consumer demand by mandating the auction of government-controlled spectrum to commercial providers. The most recent auction鈥攊n the works since 2009鈥攃oncluded in March, and reaped a record $45 billion for the U.S. Treasury. Next year the Federal Communications Commission will conduct its auction of TV spectrum. After that, no further sales are planned because no additional spectrum has been identified by Congress.
According to industry and FCC studies, the federal government still has sole or primary use of almost 70% of the spectrum best suited for broadband technologies. Congress needs to transfer some of that spectrum from federal to commercial use. That requires a comprehensive plan, which is crucial for maintaining the country鈥檚 momentum in wireless networks, devices and apps. Otherwise, investment, innovation, jobs and economic growth will suffer.
Concepts in the Senate鈥檚 or the in the House are a constructive place to begin. Congress can create financial incentives鈥攕uch as allowing government agencies to share in auction proceeds鈥攖o encourage agencies like the Pentagon or the Transportation Department to relinquish spectrum that they aren鈥檛 efficiently using. But if the agencies balk, Congress should make them give it up.
Congress should also consider spectrum sharing. The FCC proposed an idea, endorsed last year by the White House panel of science and technology advisers, to use database technology that would enable the sharing of radio frequencies among commercial broadband, military and other government systems. Spectrum sharing would benefit the armed services, helping to reduce the growing gap between communications technologies available to consumers and those available to our troops. It might also reduce Pentagon equipment costs.
Unlicensed spectrum, for which government permission isn鈥檛 required for consumers to use, is another opportunity. This spectrum, currently used for technologies such as Wi-Fi and Bluetooth, can continue to be a powerful platform for innovation, and the government needs to ensure that there is sufficient spectrum for both licensed and unlicensed use. Freeing up additional spectrum for unlicensed use would not directly produce revenue for the Treasury. But unlicensed spectrum has indirect economic benefits through investment, job creation and the launch and growth of U.S.-based companies, including businesses connecting home appliances and lifesaving devices to the Internet.
Bringing federal spectrum to market and raising revenue for the government need not be politically divisive. We served together on the FCC, a Democrat and a Republican, yet we worked side-by-side on creative ways to put the power of spectrum into the hands of entrepreneurs and consumers. Reaching bipartisan consensus is achievable again, because the abundance it produces resolves so many concerns and challenges.
Historically, it takes the better part of a decade to identify the spectrum that needs to be transferred or freed up, set the auction rules and band plans (鈥渮oning鈥� of spectrum), organize the bidders, enable the building of towers and other infrastructure and, ultimately, light up new networks to serve consumers. has projected that more than 750,000 new jobs could be created by deploying more mobile broadband. Though Congress has many other issues to handle, it can still advance a pro-growth spectrum policy this year to ensure America鈥檚 emerging Internet-of-things economy doesn鈥檛 stall.
If we fail to adopt a plan to transfer federal spectrum to private users, policy makers may inadvertently undermine U.S. competitiveness and job creation. Keeping discussions bipartisan and focused on solving problems through investment, innovation, job growth and new revenue for the Treasury will best ensure that new technologies pioneered in the U.S. are first enjoyed by U.S. consumers.