According to GlobalData, bureaucratic hurdles and missteps have hindered the US government’s efforts to allocate broadband spectrum. The Federal Communication Commission’s (FCC) spectrum auction authority extension failure by the Senate has created uncertainty regarding the timeline for the country’s spectrum future. Consequently, the current status of the US spectrum pipeline is uncertain.
GlobalData’s report titled “The US Spectrum Pipeline Is Currently More Clown Car Than Cogent Strategy” highlights that as video, social media, gaming, and communication applications become increasingly data-intensive, the average monthly mobile data consumption per subscription in the US is expected to rise from 23.6 gigabytes (GB) in 2023 to 46.3 GB in 2027.
Charles Garrett, Senior Global Telecom Consumer Services Analyst at GlobalData, comments: “The legislature dropping the ball on renewing the FCC’s spectrum auction authority is jamming up all manner of government spectrum business, including long-term agenda items like identifying and repurposing relevant spectrum bands and short-term requirements like handing over licenses for assets purchased in 2022.”
Garrett adds: “The ongoing trends in streaming and short-form video as well as the more nascent cloud gaming space will see that usage spike continue. Consequently, carriers will need to be able to lash together multiple spectrum ranges if they hope to beat usage to the spot.”
Despite the current setback, certain factors suggest that the timing may be opportune. The US telecommunications industry is currently occupied with the activation of spectrum assets acquired in recent auction rounds, while economic challenges may dampen operators’ interest in investing in spectrum in the near future. However, this overlooks not only the immediate concern of fulfilling license obligations for auctions that conclude in 2022 but also the long-term nature of the spectrum allocation process.
Garrett continues: “Successfully repurposing spectrum is a years-long ordeal that requires coordination and earnest cooperation across a variety of organizations and industries, many of which too often work at cross-purposes. The US wireless operators, which are only just starting to see some of the advantages touted (too) early in 5G’s hype cycle, can ill afford a prolonged spectrum drought.”
The recent lack of clarity surrounding the FCC’s spectrum authority undermines recent initiatives by the Biden administration and the National Telecommunications and Information Administration (NTIA) to develop a “national spectrum strategy.
Garrett concludes: “While the government is way overdue in recognizing the need for more concerted coordination and collaboration in developing and auctioning spectrum assets, launching a national spectrum strategy at a time when no agency has established, long-term auction authority feels like the wrong order of operations. A cogent national approach is fundamentally necessary, of course, but so too is an engine to drive it.”
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