The Hill - Spectrum Auction is Bipartisanship in Action

Op-Ed

By Tom Wheeler (Chair of the Federal Communications Commission) and Rep. Greg Walden (R-Ore.)

What if someone told you that Republicans and Democrats in Washington, D.C., worked together to create thousands of new American jobs, reduce the deficit, and contribute billions to our country's economic growth?

As improbable as that may sound, it happened.

On Thursday, the Federal Communications Commission completed an auction of spectrum -- the radio frequencies that transmit the data that fuels our communications and economy -- that will be used to expand and improve mobile broadband. Gross bids totaled almost $44.9 billion, making this auction -- known as the AWS-3 auction -- the highest-grossing spectrum auction in U.S. history.
By any measure, this auction was a resounding success. Winning bids came in about three times higher than analysts had expected, but more important, the revenue generated by the auction will be put to productive and responsible use.

The money will be used to fund FirstNet, the government agency tasked with creating the nation's first interoperable broadband network for first responders, to finance technological upgrades to our 911 emergency systems, and to contribute over $20 billion to deficit reduction.

In addition, the auction brought 65 Megahertz of spectrum to market to fuel our nation's mobile broadband networks. The wireless industry estimates that for every 10 Megahertz of spectrum licensed for wireless broadband, 7,000 American jobs are created and U.S. gross domestic product increases by $1.7 billion. Bringing additional spectrum to market also contributes to technological innovation, greater competition, and more consumer choices.

Not long ago, many people said an auction like this couldn't be done. But both parties in Congress got together in 2012 to pass legislation, which authorized the AWS-3 auction.

The spectrum sold in the auction was originally being used by the U.S. military and other federal agencies before the Act passed. But after the legislation passed, bipartisan congressional and agency staffs worked to develop a plan for how to auction, relocate, and share this valuable federal spectrum without ever jeopardizing critical national security functions at the Pentagon or across the government.

The auction would not have been possible without the collective efforts of a broad range of partners across the government: especially leadership of the congressional commerce committees, the National Telecommunications and Information Administration, and the Departments of Defense, Justice, and Homeland Security.

But the success story isn't over yet. Another spectrum boon for consumers and our economy is on the horizon. The law also directs the FCC to hold a first-of-its-kind Incentive Auction: a new, two-sided auction that harnesses market forces to repurpose spectrum voluntarily relinquished by TV broadcasters for wireless broadband.

This "beachfront" spectrum is especially valuable. Since the AWS-3 auction successfully paid for the priorities mandated by Congress, every cent of net revenue from the Incentive Auction -- after payments to broadcasters who elect to relinquish spectrum -- will go toward deficit reduction.

Something like the Incentive Auction has never been tried before -- but neither had anything like the AWS-3 auction. As we've seen, that auction's success is a good sign that bipartisan, collaborative efforts can and do produce positive results for the American people.

We hope to see the same level of dedication, cooperation, and ingenuity as the Commission and its partners work to ensure the Incentive Auction is a success. Bipartisan collaboration across the government is still very possible, and this work will help cement our country's global leadership in mobile innovation.

Wheeler is the chairman of the Federal Communications Commission. Walden has represented Oregon's 2nd Congressional District since 1999. He sits on the Energy and Commerce Committee and is chairman of the Subcommittee on Communications and Technology.

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