The MOBILE NOW Act: An Important Step Forward
by
Gregory J. Vogt *
[Below is the Introduction and Summary and the Conclusion to this latest FSF Perspectives. A PDF version of the complete Perspectives is here.]
Introduction and Summary
Washington D.C. appears poised to recognize the vital national interest in locating and re-allocating sufficient spectrum for wireless 5G use. Although 4G networks, or Long Term Evolution (LTE) systems, are only recently operational and growing, the wireless industry predicts that it will begin to deploy the next iteration of mobile networks as early as 2020. Although this timeframe is four years and two presidential elections away, it is none too soon for the reallocation process to begin in earnest, especially given the long lead time historically needed to accomplish such major reallocation efforts. Therefore, kudos to Senators John Thune and Bill Nelson, the Chairman and Ranking Member, respectively, of the Senate Commerce, Science, and Transportation Committee, for trying, on a bipartisan basis, to jumpstart the 5G spectrum pipeline with the MOBILE NOW Act, S. 2555, introduced on February 11, 2016.
More spectrum is needed for 5G, and relatively soon. The government is behind in its efforts to reallocate 500 MHz of spectrum for wireless broadband use that the Obama Administration first announced in 2010. The government needs to reallocate by 2019 an additional 350 MHz
of spectrum for high power dedicated mobile broadband use just to meet customer demand. A number of econometric studies have demonstrated the huge enhanced consumer welfare value associated with wireless services.
NTIA has indicated it will announce more spectrum finds for potential reallocation by the end of this calendar year. And the FCC is currently working on the previously announced incentive auction spectrum, as well as an inquiry into potential above 24MHz allocations. But these efforts are lagging consumer demands. They need a push, such as MOBILE NOW.
MOBILE NOW advances that effort. Its main provisions include: (1) a mandate that the Administration's wireless spectrum allocation goals be met by the end of 2020; (2) a feasibility study for reallocating six specified bands above 24 GHz by the end of 2017, (3) a feasibility study for commercial-government sharing of spectrum between 3.1 and 3.5 GHz and between 3.7 and 4.2 GHz; (3) provisions to speed deployment of communications infrastructure on federal property; and (4) an NTIA report making recommendations to Congress that would provide incentives to federal agencies to relinquish or share the spectrum they use.
Despite these laudable efforts, however, the Senate may be settling for a weaker solution than is desirable, perhaps because of demands either from the Administration or congressional Democrats. The legislation, hopefully through the amendment process, can be improved in at least the following respects: (1) by imposing a deadline on actual reallocation of millimeter wave spectrum, (2) by establishing effective incentives for government to vacate unneeded spectrum and ensuring the use of modern technology, and (3) by imposing a firm deadline for federal agencies to grant infrastructure access to government lands.
There is no question that MOBILE NOW is far better than last year's Spectrum Pipeline Act. Regardless, until final enactment incorporating any amendments, it is still too soon to say for sure that the MOBILE NOW Act will be a meaningful step forward.
Conclusion
It is encouraging that Washington officialdom has found some bipartisan consensus to advance reallocating spectrum for wireless mobile and fixed broadband use. The consensus, however, apparently has come at the expense of stronger measures that would complete reallocation efforts in a timely fashion and to give government effective incentives to vacate spectrum or improve efficiency. Notwithstanding this, if the consensus achieves the intended results, overall consumer and business interests would clearly be promoted through significant additional spectrum for flexible 5G use. So I congratulate Senators Thune and Nelson for the proposed MOBILE NOW Act, but I hope that some of the weaknesses can be corrected as the legislative process moves forward. Further improvements such as I have discussed would vastly increase consumer welfare and be the ticket that consumers need to ride the IoT train into the future.
* Gregory J. Vogt is a Visiting Fellow of the Free State Foundation, an independent, nonpartisan free market-oriented think tank located in Rockville, Maryland.
A PDF of this Perspectives is here.
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