Spectrum Auction Authority a Hill Priority, but GOP Wants ACP Changes Before More Funding

HOT SPRINGS, Virginia -- Restoring the FCC’s lapsed spectrum auction authority is a major priority of the Senate Commerce Committee and the House Communications & Technology Subcommittee, Democratic and Republican staffers said Saturday at the FCBA annual retreat here. John Lin, House Communications and Technology Subcommittee Republican senior counsel, said while Republicans would consider discussing continuing the affordable connectivity program, changes to it must come first. Speakers also covered next steps for the cyber trust mark and interagency relations on spectrum conflicts.

The first broadband equity, access and deployment (BEAD) grants to states could arrive by year's end, said NTIA senior adviser to the assistant secretary. He indicated Louisiana could be first, as its BEAD initial plan was the first approved (see 2312150047) and the state is passionate about being first. He said a key issue concerning how soon states receive grants is how long it takes them to go through the iterative process of determining all eligible locations. Sarah Morris, NTIA acting principal deputy assistant secretary, said while BEAD has been on a national timeline for states to deliver initial applications, it's now breaking off into individualized timelines for each of the states.

Lin said ACP items that need revisions include tighter eligibility guidelines, ensuring the subsidy goes only to those who are truly needy. In addition, he said including ACP as a USF program will require USF reforms because USF already has sustainability challenges. Jennifer Epperson, House Communications and Technology Democratic chief counsel, said members are "disappointed where we are right now" concerning new funding for ACP. She said lawmakers will continue discussions about it working through USF or other routes.

The National Security Council is increasingly playing a role in White House telecom policy, and that reflects in part its robust process for convening agencies and getting consensus on conflicts over band use, said Matthew Pearl, White House National Security Council director-emerging technologies. In addition, he said NSC's increased telecom interest is a reflection that spectrum is vital to technological and geopolitical competition with China. Pearl said last fall's presidential memorandum on modernizing U.S. spectrum policy (see 2311130048]) shows the attention the White House is giving spectrum. The dispute resolution process created in the memorandum ensures the executive branch speaks with one voice when there are disagreements among agencies. He said disputes about the 24 GHz band, as well as the C-band fight on altimeters, showed a "broken-down process," including a lack of coordination and agreement, leading to disputes that then went public.

The interagency process on spectrum is working better than in the past, post-presidential memorandum, NTIA's Murphy said. He added that a big challenge is that federal agencies increasingly see spectrum as a strategic resource not just for their current missions but for next-generation capabilities they want to deploy, and thus are interested in expanding their access.

Cybersecurity hasn't been a big area of market differentiation so far when it comes to consumer devices, but the cyber trust mark could change that, FCC Commissioner Nathan Simington said. If one company uses it on a product, then competitors must respond why they aren't, he said. Simington said the first devices bearing the cyber trust mark could hit the marketplace in early 2025, though significant numbers and volumes will likely take longer. He and other speakers said it's inevitable the FCC will move more heavily toward data privacy regulation, as that's a trend among numerous regulatory agencies.

NSC's Pearl said the U.S. has reached an agreement in principle with the EU for mutual recognition of the cyber trust mark. Moreover, the U.S. will talk with other countries and regions to get mutual recognition in a bid to leverage it globally.

Predicting that the FCC's net neutrality order will be shot down on judicial appeal, FCC Commissioner Brendan Carr said that would be the best chance of having Congress address net neutrality policy, as lawmakers will be particularly incentivized. He said a reason Congress hasn't addressed net neutrality issues definitively is because it has let agencies do the work. He said the major questions doctrine approach that is emerging in federal courts will create better incentives in Congress for tackling such issues more directly. While courts handle its appeal, expect the order to have a chilling effect on network innovation, he said.