FCC Auction Authority Extension to May 19 Not Seen as Fait Accompli in Senate

Sen. Mike Rounds, R-S.D., told us he may be one potential roadblock to extending the FCC's authority only through mid-May but stopped short of outright committing to object to Senate passage of HR-1108 if leaders seek to move it by unanimous consent. Rounds, whose objections to 3.1-3.45 GHz language in a bipartisan December spectrum proposal scuttled its inclusion in the FY 2023 omnibus appropriations package (see 2212190069), is pushing for a reauthorization that lasts until “after this fiscal year ends” Sept. 30.

A post-Sept. 30 extension is “still my preference” rather than a stopgap until May 19 and “I intend to introduce legislation along that line” in the near future, Rounds said. He noted interest from other senators in pursuing a longer renewal in hopes it will carry negotiations past when DOD is expected to complete its Infrastructure Investment and Jobs Act-mandated analysis on relocating its systems off the 3.1-3.45 GHz band. IIJA’s language on the band gave DOD more say in deciding how much of the frequency the FCC would be able to repurpose for commercial use, while the scuttled December spectrum proposal would have given the Commerce Department the ability to override DOD’s recommendations (see 2212200077).

“There’s been a lot of great progress that’s been made” in talks thus far, but “obviously we’ve got to come up with a new date” to extend the FCC’s mandate so negotiations can continue unabated, Senate Commerce Committee Chair Maria Cantwell, D-Wash., told us. “There’s been discussion about moving” that deadline forward, but she wasn’t immediately sure whether Senate Commerce leaders have agreed to May 19 as the date. Cantwell’s office didn’t comment.

“We’re engaged in discussions with [Senate Commerce] members right now” about whether to agree to HR-1108’s proposed extension, said committee ranking member Ted Cruz, R-Texas. “I fully anticipate that we will extend auction authority and I’m hopeful over time we can pass a major bipartisan bill” that would address an array of spectrum legislative issues. Cruz would welcome the extra time to negotiate on the issues the December deal addressed, and Cantwell appears willing to accommodate that, said a telecom lobbyist who follows Senate deliberations.

Lead HR-1108 sponsor and House Commerce Committee Chair Cathy McMorris Rodgers, R-Wash., and other bill backers emphasized on the chamber floor Monday the measure is needed as a stopgap to allow bill talks to continue. It “will ensure that the FCC has the authority it needs to continue issuing licenses to provide better coverage and wireless speeds across the U.S.,” Rodgers said: “This extension will give us enough time to work out a broader deal on spectrum policy to ensure that the U.S. continues to lead the world on 5G and technological innovation and beats China.”

“It’s essential that we extend this authority,” said HR-1108 co-sponsor and House Commerce ranking member Frank Pallone, D-N.J. “Congress has never allowed this spectrum authority to lapse and to maintain our nation’s global leadership in wireless innovation, we must ensure that consistent management and oversight of spectrum auctions remains intact.” Lawmakers “must spend the next few months … to pass a bipartisan spectrum agreement that can get to the president’s desk before the FCC’s auction authority expires again,” he said.

Most communications sector stakeholders praised the House for passing HR-1108, though they cautioned against lawmakers unnecessarily dragging their feet. Some oppose never-ending stopgaps. “A three-month reauth just kicks the can down the road,” said High Tech Forum founder Richard Bennett: “Congress should make the FCC’s auction authority open-ended, revising details as circumstances warrant.”

“Congress has never allowed this critical function” to expire and the House’s passage of HR-1108 means “we are a step closer to ensuring it remains protected,” said CTIA President Meredith Baker. “Preserving the FCC’s auction authority will protect our international status, and maintain the FCC’s power enabling us to keep pace with China and other countries that are already ahead of us in making licensed spectrum available for 5G.”

“While this is a necessary step, I encourage all sides to reach a long-term agreement as soon as possible,” said Incompas CEO Chip Pickering. “Any package that is passed needs to empower the FCC to leverage the nation’s spectrum resources for more licensed and unlicensed broadband use cases, including 5G service. This authority is critical to ensuring we are at the forefront of innovation and remain a global leader in the telecommunications marketplace."

“In the coming weeks, work remains to advance a longer timeframe for auction authority that furthers work on bands that can be reallocated for continually growing wireless use and provides additional funding to address the shortfall for the Secure and Trusted Communications Networks Reimbursement Program,” said Competitive Carriers Association President Tim Donovan. The December proposal would have used some auction proceeds to allocate an additional $3.08 billion needed to fully fund the FCC-led rip and replace program. “‘Rip and replace’ remains a key bipartisan priority for national security, and carriers who have worked diligently to replace untrusted telecommunications network equipment must have the certainty of full funding as soon as possible,” Donovan said.