Can auctioning off spectrum solve the budget crisis? On its own, probably not, but a new, $2.7 trillion budget proposal from Senate Majority Leader Harry Reid includes a section that would let TV broadcasters auction off unused spectrum, with a portion of the proceeds going to the U.S. Treasury.
Lawmakers and agencies like the Federal Communications Commission have been talking about these so-called "incentive auctions" for some time. TV broadcasters are sitting on spectrum they're not using and wireless providers want access to it to help handle the influx of traffic created by data-heavy devices like smartphones and tablets. The government also wants to use some of it for an interoperable public safety network. Voluntary spectrum auctions, led by the government, frees up that spectrum and creates funds for broadcasters and the government, according to supporters.
The National Association of Broadcasters, however, has voiced concerns about whether the auctions will be truly voluntary. In a Tuesday statement about Reid's plan, NAB said it was "deeply concerned" that his legislation "would threaten the future of a great American institution."
"We will work with him as the process moves forward in hopes that our issues can be addressed," said Dennis Wharton, NAB's executive vice president of communications.
Reid's plan, meanwhile, wouldn't happen overnight—certainly not in time to beat the debt ceiling clock. It calls on the Assistant Secretary of Commerce for Communications and Information to identify, within a year of the bill's enactment, spectrum that can be immediately allocated. Then, the FCC will conduct spectrum auctions no later than January 31, 2016 in bands between the 1915 MHz and 2180 MHz frequencies.
This is not the only Senate bill to tackle this issue. Last month, the Senate Commerce Committee approved a bill that also calls for spectrum auctions to help fund an interoperable public safety network. Bill sponsor and committee chairman John Rockefeller said he would push members to act on the legislation as soon as possible in an effort to have it signed into law by the tenth anniversary of the September 11, 2011 terrorist attacks. It has not yet seen any action since its June 8 committee passage, however.
A Rockefeller spokesman told The National Journal that Reid's spectrum plan is "very good" and ultimately "mirrors Chairman Rockefeller’s legislation in many ways."
As the Journal notes, the Republican debt ceiling plan does not mention spectrum at this point, but GOP Rep. Lee Terry said House efforts to reduce the budget will probably include spectrum legislation.
President Obama has voiced his support for spectrum auctions. During a February speech that unveiled his plan to boost wireless broadband access, Obama said incentive auctions could raise an estimated $27.8 billion and help reduce the deficit by $9.6 billion over the next 10 years. In a July report, the Congressional Budget Office said the auctions, based on Rockefeller's bill, could raise $24.5 billion, $6.5 billion of which could be used to reduce the deficit.
In a Tuesday blog post, wireless trade group CTIA compared U.S. spectrum availability to nine other countries. "Despite having more subscribers who use their devices more and the lowest revenue per minute than any of the nine other countries, the U.S. has the fewest megahertz of spectrum in the pipeline," CTIA wrote. In order to meet demand and invest in new devices, U.S. providers need more spectrum as soon as possible, the group said.