Previously, the FCC granted licenses using a process known as "comparative hearings" (also known as "beauty contests"), and has used lotteries to distribute spectrum licenses. Spectrum Policy Provisions in the Middle Class Tax Relief and Job Creation Act of 2012

The Middle Class Tax Relief and Job Creation Act of 2012 ( P.L. 112-96 ) was signed into law on February 22, 2012. Many of the provisions in Title VI of the act focus on spectrum assignment within the existing regulatory framework, in which licenses for designated radio frequencies are awarded through competitive bidding systems (auctions). Specific provisions of Title VI (frequently referred to as the Public Safety and Spectrum Act, or Spectrum Act) include expediting auctions of licenses for spectrum designated for mobile broadband; authorizing incentive auctions, which would permit television broadcasters to receive compensation for steps they might take to release some of their airwaves for mobile broadband; requiring that specified federal holdings be auctioned or reassigned for commercial use; and providing for the availability of spectrum for unlicensed use. Major provisions in the Spectrum Act that are summarized in this report cover
Deficit reduction; Directed auctions; Incentive auctions for television broadcasters; Reallocation of spectrum from federal to commercial use; and Unlicensed spectrum. The act also provides for the establishment of a new authority to plan and develop a nationwide public safety broadband network (FirstNet) and other measures in support of improved emergency communications. To NIST for public safety research, phase two: $200 million. New technologies are being developed by companies in various industry sectors to expand the usefulness of unlicensed spectrum without causing interference. Spectrum caps might limit the amount of spectrum available through auction to the top two carriers in key auctions such as those for repurposed television spectrum. Other policy options that may be employed to increase spectrum capacity include requiring that wireless network infrastructure be shared; changing the cost structure of spectrum access; moving to more spectrum-efficient technologies; and sharing spectrum. Activity regarding the Internet of Things, in addition to several hearings, includes resolutions calling for a national strategy for the Internet of Things.
The Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96, signed February 22, 2012) contains provisions in Title VI that expedite the availability of spectrum for commercial mobile broadband. The provisions in Title VI—also known as the Public Safety and Spectrum Act, or the Spectrum Act—cover reallocation of spectrum, new assignments of spectrum rights, and changes in procedures for repurposing spectrum used by the federal government. The act establishes a process for television broadcasters to release spectrum licensed to them for auction as commercial licenses (Broadcast Incentive Auctions). The act also includes provisions to apply future spectrum license auction revenues toward deficit reduction; to establish a planning and governance structure to deploy public safety broadband networks, using some auction proceeds for that purpose; and to assign additional spectrum resources for public safety communications.
Broadband capacity to support popular mobile services and devices, such as real-time viewing of video on smartphones, can be improved in several ways. Examples include (1) providing new spectrum for networks to expand; (2) investing in denser infrastructure; (3) developing new technologies; or (4) expanding opportunities for sharing spectrum. Provisions of the Spectrum Act focus on increasing the amount of spectrum as the key policy tool for spectrum management.
Going forward, other policy tools may need to be considered in order to make spectrum access more inclusive. Many policy makers and Members of Congress are concerned, for example, that the current structure of auctions to assign spectrum licenses does not provide enough opportunities for competition or new entrants into mobile communications markets. The spectrum needs of the Internet of Things and other emerging technologies that some believe may be key drivers of future economic growth are not specifically addressed in the Spectrum Act. Many growth industries that are deemed to be part of the Internet of Things require reliable, affordable access to spectrum.