FCC Spectrum Auction Authority: Background and Proposals for Extension

Radio spectrum (“spectrum”) is the continuum of frequencies allocated for radio transmissions and is a finite and valuable resource. It is necessary for companies seeking to provide wireless services, such as radio broadcasting, mobile communications, and satellite services. In 1934, Congress created the Federal Communications Commission (FCC), an independent agency, to manage nonfederal use of spectrum. The FCC allocates segments of spectrum for various uses, such as radio broadcasting, mobile communications, satellite services, and land mobile radio communications. It grants licenses to nonfederal entities to use specific frequencies within those bands and sets terms and conditions on use to serve the public interest, avoid interference between users, and promote the most efficient use of spectrum. In 1993, Congress authorized the FCC to use competitive bidding (i.e., auctions) to grant licenses for rights to use specific frequencies for commercial wireless communications. That authority was originally due to expire on September 30, 1998, but Congress has extended it several times. The most recent long-term extension, granted as part of the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96), was set to expire on September 30, 2022. Four additional extensions were made during the 117th Congress: On September 30, 2022, President Biden signed the Continuing Appropriations and Ukraine Supplemental Appropriations Act, 2023 (P.L. 117-180, H.R. 6833). Division C, Section 101 amended the Communications Act of 1934 (47 U.S.C. 309(j)(11)) to extend the FCC’s spectrum auction authority through December 16, 2022. On December 16, 2022, President Biden signed the Further Continuing Appropriations and Extensions Act, 2023 (H.R. 1437, P.L. 117-229). Division B, Title I, Section 101 amended the Communications Act of 1934 (47 U.S.C. 309(j)(11)) to extend the FCC’s spectrum auction authority from December 16, 2022, to December 23, 2022. On December 23, 2022, President Biden signed the Further Additional Continuing Appropriations and Extensions Act, 2023 (H.R. 4373, P.L. 117-264). Division B, Title I, Section 101 amended the Communications Act of 1934 (47 U.S.C. 309(j)(11)) to extend the FCC’s spectrum auction authority from December 23, 2022, to December 30, 2022. On December 29, 2022, President Biden signed the Consolidated Appropriations Act, 2023 (H.R. 2617). Division O, Title IX, Section 901 amended the Communications Act of 1934 (47 U.S.C. 309(j)(11)) to extend the FCC’s spectrum auction authority from December 30, 2022, to March 9, 2023. Supporters of an extension of the FCC’s auction authority see auctions as an effective means to manage spectrum access and use. During the 117th Congress, Members introduced several pieces of legislation to extend the FCC’s spectrum auction authority, either as stand-alone legislation (H.R. 7783) or as part of comprehensive spectrum legislation (H.R. 7624 and S. 4117). On July 27, 2022, the House passed the Spectrum Innovation Act of 2022 (H.R. 7624), to extend the spectrum auction authority until March 31, 2024; require the auction of the 3.1-3.45 GHz band; and allocate auction revenues to fund 911 improvements and the Secure and Trusted Communications Network Reimbursement Program. The Secure and Trusted Communications Network Reimbursement Program pays to “rip and replace” untrusted equipment from U.S. telecommunication networks. With the FCC spectrum auction authority now extended through March 9, 2023, Members are reportedly debating the duration of a future extension and the best legislative vehicle for the extension, whether in a stand-alone bill, annual appropriation bill, or some other vehicle. Members are also continuing to discuss the development of a comprehensive spectrum package that would include a further extension among other provisions. Representative Mike Doyle, Chairman of the Committee on Energy and Commerce’s Subcommittee on Communications and Technology, urged Senate concurrence on H.R. 7624; however, some Senators do not agree with certain elements of the bill. Some Senators support an approach similar to that used in P.L. 112-96, which provided a long-term extension of the FCC’s spectrum auction authority (e.g., 10-year), named several frequency bands for auction, and specified uses for spectrum auction revenue. Given recent spectrum disputes, some Senators would also like to include provisions to improve interagency coordination on spectrum decisions in a comprehensive spectrum bill. If Congress does not reach agreement to extend the FCC’s spectrum auction authority by March 9, 2023, the FCC will no longer be able to auction spectrum licenses for particular bands, potentially creating uncertainty for agencies and industry. Congress could extend the FCC’s auction authority through stand-alone legislation, such as H.R. 7783; comprehensive legislation, such as H.R. 7624; annual appropriation bills; or some other legislative vehicle.