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Framing Spectrum Policy: Legislative Initiatives (CRS Report for Congress)

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Release Date Revised Oct. 26, 2016
Report Number R44433
Report Type Report
Authors Linda K. Moore, Specialist in Telecommunications Policy
Source Agency Congressional Research Service
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Summary:

Access to radio frequency spectrum is essential to wireless communications. As demand for mobile services increases, from all sectors of society and the economy, so does the need to increase the capacity of wireless networks. Capacity for mobile broadband to support popular mobile services and devices can be improved in several ways. Examples include (1) providing new spectrum licenses for networks to expand; (2) investing in denser infrastructure; (3) directing network traffic between licensed and unlicensed capacity, as needed; (4) developing new technologies; and (5) expanding opportunities for sharing spectrum between two or more users. Providing spectrum licenses to support new uses for the airwaves has been a mainstay of spectrum policy since the original Communications Act of 1934. Most legislation over the last two decades that deals with spectrum assignment and allocation has focused on assuring the “highest and best use” for spectrum rights by assigning them through competitive auctions. Spectrum suitable for commercial use has often been allocated initially for federal purposes. To facilitate the transfer of federal spectrum to commercial wireless services, the Commercial Spectrum Enhancement Act of 2004 created the Spectrum Relocation Fund to reimburse federal agencies for costs incurred in vacating spectrum. The 2012 Spectrum Act (Title VI, Middle Class Tax Relief and Job Creation Act of 2012, P.L. 112-96) includes provisions to increase the amount of spectrum licenses available for auction and to improve management of the Spectrum Relocation Fund. The Spectrum Pipeline Act of 2015 (Title X, Bipartisan Budget Act of 2015, P.L. 114-74) has a similar focus on providing new spectrum licenses for auction but takes a somewhat broader approach to meeting spectrum needs, offering more support for spectrum sharing and for federal research to improve spectrum and network efficiency. Both acts also include provisions to provide unlicensed spectrum (typically allocated for Wi-Fi applications). Additionally, the Spectrum Act (sometimes referred to as the Public Safety and Spectrum Act) establishes a process for television broadcasters to release spectrum licensed to them to be auctioned as commercial licenses for mobile broadband (Broadcast Incentive Auctions). The act also includes provisions to apply spectrum-license auction revenues toward deficit reduction; to establish a planning and governance structure to deploy public safety broadband networks, using some auction proceeds for that purpose; and to assign additional spectrum resources for public safety communications. Two auctions required by the Spectrum Act have been completed. The final auction required by the Spectrum Act is the Broadcast Incentive Auction, which began in March 2016 and may conclude by year-end. The Spectrum Pipeline Act requires the release of 130 MHz of federal and commercial spectrum in three phases, with the process beginning in 2022. Licenses for exclusive use and shared spectrum as well as allocations for unlicensed spectrum are allowed uses for repurposed federal spectrum. The act gives priority to using auction proceeds deposited in the federal Spectrum Relocation Fund for research programs that improve spectrum efficiency. A number of bills concerning spectrum policy may be considered during the second session of the 114th Congress. These are likely to include the MOBILE NOW Act (S. 2555); and the DIGIT Act (S. 2607) and its companion bill (H.R. 5117). In brief, MOBILE NOW might be described as meeting the needs for growth within the existing wireless industry, and the DIGIT Act as expanding the availability of spectrum to meet the needs of the industries developing products and services for the Internet of Things. The 114th Congress has passed resolutions that call for strategic planning at the national level for the Internet of Things (S.Res. 110, H.Res. 195).