Allocation and Assignment

The allocation and assignment of radio frequency spectrum are managed by the Federal Communications Commission (FCC) for commercial and other nonfederal uses and by the National Telecommunications and Information Administration (NTIA) for federal government use. The FCC also allocates spectrum for designated purposes, such as Wi-Fi, without assigning a license to a specific owner (unlicensed spectrum). Title VI of the Middle Class Tax Relief and Job Creation Act of 2012 ( P.L. 112-96 ) addresses spectrum allocation and assignment in its provisions and is often referred to as the Public Safety and Spectrum Act, or the Spectrum Act. A third auction required by the act, the Broadcast Incentive Auction, began on March 29, 2016. Additional auction revenues in excess of the projected amount are to be applied to deficit reduction. Proceeds from the sale of licenses of repurposed federal spectrum identified in the Spectrum Act are to be directed first to the Spectrum Relocation Fund, to cover costs of moving federal users, with the balance going to the Public Safety Trust Fund. Proceeds from the auction of new licenses created by the release of television broadcasting spectrum are to go to cover costs specified in the act, with the balance to the Public Safety Trust Fund. Completed Auctions (H Block and AWS-3)

The Spectrum Act requires the FCC and the NTIA to identify specific bands for auction from spectrum designated for commercial advanced wireless services and for federal use, and in most cases to commence the auction process within three years. For the results of a forward auction to be valid, auction proceeds must at a minimum cover (1) payments to broadcasters that relinquished spectrum for auction, (2) the costs to the FCC of conducting the auctions, and (3) the estimated costs for relocation of other broadcasters, which are not to exceed $1,750 million, deposited in a TV Broadcaster Relocation Fund for relocation costs. Spectrum Pipeline Act of 2015

The Spectrum Pipeline Act of 2015 passed as part of the Bipartisan Budget Act of 2015 ( P.L. 114-74 , Title X). To facilitate the transfer of spectrum rights to commercial purchasers from the agencies relinquishing spectrum, the Commercial Spectrum Enhancement Act of 2004 ( P.L. The Spectrum Pipeline Act added specific criteria for the Technical Panel to consider in approving plans, including whether a plan will "increase the net expected auction proceeds in an amount not less than the time value of the amount of the payment.... " 

		Making Federal Spectrum Available for Commercial Use

In 2010, the NTIA, with input from the Policy and Plans Steering Group (PPSG), has produced a 10-year plan and timetable that identifies bands of spectrum that might be available for commercial wireless broadband service. Future actions are likely to release additional segments of the band. Beginning in 2001, spectrum policy placed increased emphasis on promoting spectrum and market efficiency. Issues for the 114th Congress: Planning for Future Needs

The Spectrum Act and the Spectrum Pipeline Act focus on three key policy tools for increasing the availability of radio frequency spectrum for wireless broadband: allocating additional spectrum through competitive auctions; reassigning federal spectrum for commercial use; and opening up spectrum for unlicensed use. Overall, the provisions of the MOBILE NOW Act appear to provide leeway for accommodating new technology in its requirements for licensed, unlicensed, and shared use of spectrum resources. The DIGIT Act

The Developing Innovation and Growing the Internet of Things Act, or DIGIT Act ( S. 2607 ), and its companion bill ( H.R. The DIGIT Act would direct the FCC to prepare a report assessing spectrum needs required to support the Internet of Things. These recommendations would focus on how to plan for, and encourage, the growth of the Internet of Things in the United States. In other words, 5G is seen by many as including IoT solutions outside mobile broadband.
As innovation advances wireless communications from the business of providing mobile broadband to consumers into new businesses built around the Internet of Things, the need to revisit spectrum policy may gain in legislative importance. Many policy decisions since the 1990s that deal with spectrum assignment and allocation have focused on assuring the "highest and best use" for spectrum rights by assigning them through competitive auctions. To facilitate the transfer of federal spectrum to commercial wireless services, Congress, in 2004, created the Spectrum Relocation Fund to reimburse federal agencies for costs incurred in vacating spectrum.
In recent legislation, the 2012 Spectrum Act (Title VI, Middle Class Tax Relief and Job Creation Act of 2012, P.L. 112-96) includes provisions to increase the amount of spectrum licenses available for auction and to improve management of the Spectrum Relocation Fund. The Spectrum Pipeline Act of 2015 (Title X, Bipartisan Budget Act of 2015, P.L. 114-74) has a similar focus on providing new spectrum licenses for auction but takes a somewhat broader approach to meeting spectrum needs, offering more support for spectrum sharing and for federal research to improve spectrum and network efficiency. Both acts also include provisions to provide unlicensed spectrum (typically allocated for Wi-Fi applications).
Additionally, the Spectrum Act (sometimes referred to as the Public Safety and Spectrum Act) establishes a process for television broadcasters to release spectrum licensed to them to be auctioned as commercial licenses for mobile broadband (Broadcast Incentive Auctions). The act also includes provisions to apply 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. Two auctions required by the Spectrum Act have been completed. The final auction required by the Spectrum Act is the Broadcast Incentive Auction, which began in March 2016 and may conclude by year-end.
The Spectrum Pipeline Act requires the release of 130 MHz of federal and commercial spectrum in three phases, with the process beginning in 2022. Licenses for exclusive use and shared spectrum as well as allocations for unlicensed spectrum are allowed uses for repurposed federal spectrum. The act gives priority to using auction proceeds deposited in the federal Spectrum Relocation Fund for research programs that improve spectrum efficiency.
A number of bills concerning spectrum policy may be considered during the second session of the 114th Congress. These are likely to include the MOBILE NOW Act (S. 2555); and the DIGIT Act (S. 2607) and its companion bill (H.R. 5117). In brief, MOBILE NOW might be described as meeting the needs for growth within the existing wireless industry, and the DIGIT Act as expanding the availability of spectrum to meet the needs of the industries developing products and services for the Internet of Things. Both of these bills reaffirm the role of the Federal Communications Commission (FCC) in directing spectrum policy. The FCC, meanwhile, is moving forward with a "Spectrum Frontiers" ruling to make additional spectrum available for new technologies. As in past proceedings regarding the allocation and assignment of spectrum rights, the FCC appears to be basing many decisions on enhancing mobile broadband services for consumers as the "best use." However, the consumers of wireless access to the Internet of Things, by most accounts, will include many other categories of users. The customers of wireless carriers have in the past been drivers of industry growth; in the future, substantial growth is expected from industry and other business sector demand for wireless access to the Internet of Things.