Although government has been making laudable progress on reallocating spectrum for mobile use, current efforts must be redoubled before concluding that the crucial spectrum mission is accomplished. Recent Administration announcements of significant progress in meeting spectrum reallocation targets should be taken in context, given that mobile demand is burgeoning and outstripping existing plans for making available additional spectrum. Thus, efforts must begin now to find the additional 350 MHz of spectrum needed by 2019, as well as additional post-2020 spectrum to accommodate 5G systems, given the lengthy time it takes to reallocate spectrum.

 

 

Wireless connectivity has been wildly successful. Consumers demand it for business, information, and connecting with other people. Industry demands it to make operations more efficient and devices smarter. What started in the 1980s as cellular voice service has morphed into wireless voice, broadband, and video, and wireless demand continues to grow as entrepreneurs innovate with new applications and service offerings.

 

CTIA reports that the wireless industry made over $33 billion in capital expenditures in 2013, and more than $260 billion during the last ten years. The Brattle Group has estimated that U.S. consumers and businesses spent $172 billion on wireless services, which in turn generated more than $400 billion in total spending. Wireless adds about 1 percent to the U.S. GDP. Wireless directly employed more than 180,000 people in 2013, but had a direct and indirect impact to support 1.2 million jobs nationwide. It is no small accomplishment that United States industry leads the way in spearheading this global revolution.

 

Potential applications using wireless have been skyrocketing. The much-discussed Internet of Things has sparked ever increasing industry interest in wireless connectivity, from vehicle operation and safety, to appliance and manufacturing process monitoring, to new medical devices, to wearables. Adam Thierer estimates that up to 35 billion devices will be connected to the Internet by 2019, a large number of these through wireless services, at least in part.

 

 

CTIA has published an analysis that mobile demand in 2019 will be six times 2014 demand.

 

 

This success is attributable in large part to the fact that wireless services have remained for the most part unregulated at all levels of government. At least this was so until the FCC's recent move to regulate all Internet access in a public utility-like fashion. In any event, based on the growing demand, Washington policymakers mostly agree: the country needs more spectrum allocated to mobile use.

 

 

 

Statistics have shown that allocation of spectrum for mobile use produces enormous investment and increases to consumer welfare. A decision by government to redouble its efforts to find and reallocate sufficient spectrum would constitute wise policy that would benefit consumers and business and increase American global competitiveness.

 

Because the timeline for reallocating spectrum is so long, now is the time to identify target spectrum and begin the process of reallocation in order to meet burgeoning wireless spectrum demand. Commercial-government spectrum sharing should not be a favored approach at this point. Instead, Washington policymakers should focus on greater incentives for government to use spectrum efficiently and wisely. A government incentive auction, coupled with valuing government spectrum for budget planning purposes, has the potential to create the right incentives. Prompt mobile spectrum allocation actions would help continue the wireless American success story, which has been fueled by market forces and entrepreneurial initiative. Only then can the spectrum mission be considered accomplished.

 

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