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A Deep Dive into the BEAD Program’s Matching Funds

Will the program’s matching funds requirement stretch federal dollars, or hinder smalller providers?

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Following announcements from large fiber equipment providers that they are building fiber equipment manufacturing plants in the United States, the telecommunications industry is turning its focus from domestic manufacturing requirements to other regulatory burdens that have the potential to bar Broadband Equity Access and Deployment projects.

Of those regulations, matching and letter of credit requirements could be the major hurdles. Rules for the $42.5 billion BEAD program require that grantees produce a match of at least 25 percent of total program awards on top of a letter of credit. A letter of credit certifies that a bank will reimburse the federal government with 25 percent of program awards in the event of a default.

“Nobody wants to see BEAD funding go to waste. But requiring applicants to provide a 25 percent match and a 25 percent letter of credit risks shutting out those best-placed to bridge the digital divide and does little to protect U.S. taxpayers,” Connect Humanity CEO Jochai Ben-Avie told Broadband Breakfast. Connect Humanity is a digital equity advocacy group that invests in community connectivity providers.

Matching requirement

Many small, rural, minority and women-owned internet service providers and municipalities are ready and willing to build affordable, high-speed broadband in America’s least served and most marginalized communities, said Ben-Avie. “But, unlike the large incumbents, they don’t have millions of dollars spare to scale the BEAD capital hurdle,” he said. He called the letter of credit requirement a test of a provider’s ability to lock up working capital rather than the provider’s ability to deliver high-speed broadband.

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Contributing Reporter Teralyn Whipple, who joined Broadband Breakfast in 2022, studied marketing at Brigham Young University. She has reported extensively on broadband infrastructure, investments and deployment. She has also headed marketing campaigns for several small companies.

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Funding

$113 Million in Broadband Grants Aim to Empower Colorado’s Local Providers

All but one of the awardees are Colorado-based internet service providers.

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Photo of Highway 160 in Colorado TKN from Defense Visual Information Distribution.

WASHINGTON, January 4, 2024 – Colorado on Wednesday tentatively granted more than $113.5 million in broadband expansion awards to 13 applicants to connect nearly 19,000 homes and businesses across southwest Colorado. 

All but one of the awardees are Colorado-based internet service providers and municipal network operators. The other, Visionary Communications, offers service across two additional states, Montana and Wyoming. 

Administered through the Advance Colorado Broadband Grant Program, the awards were funded by the Treasury Department’s Capital Projects Fund. The program saw fierce competition, receiving 112 applications seeking a combined total of over $642 million across 47 counties.

Clearnetworx emerged as a major victor, securing $25.3 million for five projects. Based in Montrose, Colorado, the locally owned and operated fiber and wireless service provider arose in 2012 to address the region’s broadband scarcity.

Clearnetworx has been granted awards to install fiber along Highway 160 and Highway 184 in Montezuma County. This development coincides with the Colorado Transportation Commission’s recent approval of a fee schedule that allows broadband service providers to install fiber along the state’s roadways at reduced rates. Under the revised fiber access fee structure, broadband providers in rural counties such as Montezuma will gain access to some of the most competitive rates in the region, priced at $0.03 per foot.

Close on its heels, Maverix Broadband, is in line to win $25.1 million, aiming to deploy fiber-to-the-home services across Gilpin, Boulder, Chaffee, and Saguache counties, and Kiowa city, extending coverage to 731 locations in a city of 725 residents.

Fort Collins Connexion, a municipal broadband utility, secured $10.8 million for four projects serving 1,409 locations in Larimer County. Meanwhile, another municipal network operator, Loveland Pulse, is slated to receive $3.2 million to extend fiber connectivity to three service areas.

The Southern Ute Indian Tribe secured $8.5 million to serve 557 locations within the Southern Ute Reservation, marking a significant step in enhancing connectivity.

The recipients are committing over $42 million in additional funds towards the project’s costs – a total $155.5 million investment. 

Additionally, more funding from the Capital Projects Fund is designated for the Ridge View campus in rural Colorado. This initiative aims to establish a supportive residential community to aid in overcoming homelessness, ensuring long-term housing stability, and fostering successful reintegration into preferred communities.

The awards are set for finalization following an ongoing challenge process.

The state is committed to connecting 99 percent of Colorado’s households to “adequate” broadband by 2027. Today, over 90 percent of Colorado’s households and businesses have access to internet with 100 * 20 Megabits per second service, according to state data.

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Funding

Florida Announces $13 Million for Broadband Devices

The money will allow community centers to loan devices like laptops and routers.

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Photo by Shannon McGee

WASHINGTON, January 4, 2024 – Florida announced on Wednesday $13 million in grant funding for devices through its Digital Connectivity Technology Program.

Counties, municipalities, non-profits, and organizations serving high-poverty areas can apply for grants until March 4. The funds can be used to make devices like laptops and routers available for loan at local community centers, or to equip those community centers with connectivity equipment and devices.

The money comes from the Treasury Department’s Capital Projects Fund, a $10 billion pandemic response that provides states money for expanding broadband infrastructure and other connectivity projects. About $9 billion of that has been awarded so far.

Florida received an additional $247 million in CPF funds for its Broadband Infrastructure Program, which the state awarded in July. Those projects are expected to get broadband 59,000 homes, businesses, farms, and community centers. 

CPF rules require new infrastructure funded by the program to deliver speeds of at least 100 * 100 Megabits per second (Mbps), but most projects funded by the state are expected to provide up to 1 * 1 Gigabit per second (Gbps).

The state will hold a webinar on the Digital Connectivity Technology Program’s application process on January 10.

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Funding

In Year-End Message, FCC Chairwoman Urges Affordable Connectivity Funding

The low-income internet subsidy could run out of funding as early as April 2024.

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Photo of FCC Chairwoman Jessica Rosenworcel from December 2022

WASHINGTON, December 29, 2023 – Federal Communications Commission Chairwoman Jessica Rosenworcel again called for Congress to fund the Affordable Connectivity Program.

In a year in review note published Friday, Rosenworcel touted the FCC’s efforts to promote the ACP, which provides a $30 monthly internet discount to low-income households. She noted the more than $77 million in ACP outreach grants – money for organizations to advertise the program and get eligible households enrolled –  the Commission awarded in 2023 and the 7 million new households that signed up for the program, bringing the total to more than 22 million.

“But our progress here cannot slow down – we need help from Congress to keep this groundbreaking program going,” she wrote.

The ACP was set up with a $14.6 billion allocation from the Infrastructure, Investment and Jobs Act. About $3.6 billion of that remains, according to a monitoring tool developed by the advocacy group Institute for Local Self-Reliance. Rosenworcel testified to the Senate in September that the Commission expects that money to dry up as early as April 2024.

Republican leaders on the House and Senate commerce committees expressed some skepticism about the program in a December 18 letter to Rosenworcel, calling the ACP “wasteful” because many enrolled low-income households were able to subscribe to broadband before receiving the subsidy. The FCC’s estimates put the number at 78 to 80,  Rosenworcel testified at a November House oversight hearing, but she noted the figures are not exact, as providers are not required to collect that information when someone enrolls.

President Joe Biden asked Congress in October for $6 billion to keep the fund afloat through 2024. Bipartisan groups of lawmakers and broadband industry groups have also pushed for Congress to refund the program, saying it will be an important tool for closing the digital divide and ensuring low-income subscribers stay online.

Providers who build new infrastructure with money from the Infrastructure Act’s $42.5 billion Broadband Equity, Access and Deployment program will be required to participate in the ACP, which experts have said would help stabilize revenue for ISPs who build in the hard-to-serve areas targeted by BEAD.

Rep. Yvette Clarke, D-New York, hinted at introducing a bill before the new year to address the impending ACP shortfall during the FCC oversight hearing, but the legislation has not yet materialized.

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A Deep Dive into the BEAD Program’s Matching Funds

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A Deep Dive into the BEAD Program’s Matching Funds

Will the program’s matching funds requirement stretch federal dollars, or hinder smalller providers?

Thank you for being a part of the Broadband Breakfast Club. We hope you enjoy our September 2023 special report. Questions? Email drew@breakfast.media

Following announcements from large fiber equipment providers that they are building fiber equipment manufacturing plants in the United States, the telecommunications industry is turning its focus from domestic manufacturing requirements to other regulatory burdens that have the potential to bar Broadband Equity Access and Deployment projects.

Of those regulations, matching and letter of credit requirements could be the major hurdles. Rules for the $42.5 billion BEAD program require that grantees produce a match of at least 25 percent of total program awards on top of a letter of credit. A letter of credit certifies that a bank will reimburse the federal government with 25 percent of program awards in the event of a default.

“Nobody wants to see BEAD funding go to waste. But requiring applicants to provide a 25 percent match and a 25 percent letter of credit risks shutting out those best-placed to bridge the digital divide and does little to protect U.S. taxpayers,” Connect Humanity CEO Jochai Ben-Avie told Broadband Breakfast. Connect Humanity is a digital equity advocacy group that invests in community connectivity providers.

Matching requirement

Many small, rural, minority and women-owned internet service providers and municipalities are ready and willing to build affordable, high-speed broadband in America’s least served and most marginalized communities, said Ben-Avie. “But, unlike the large incumbents, they don’t have millions of dollars spare to scale the BEAD capital hurdle,” he said. He called the letter of credit requirement a test of a provider’s ability to lock up working capital rather than the provider’s ability to deliver high-speed broadband.

“Past federal broadband investments had either a match requirement or a letter of credit – not both,” Ben-Avie . This combination of requirements will lock out community-oriented providers and take the ‘equity’ out of BEAD. He concluded that “it’s baffling that the [NTIA] thinks the least connected, most in need communities have the $25 billion plus that would be needed to meet these match and letter of credit requirements.”

Matching funds come in the form of cash matches or in-kind contributions, in which the match is a non-cash donation of property, goods or services which benefit the project. In-kind contributions are eligible to meet match requirements so long as they meet certain criteria.

Eligible in-kind contributions include employee or volunteer services, equipment, supplies, indirect costs, computer hardware and software and the use of facilities. Additionally, states and municipalities could contribute access to rights of way, pole attachments, conduits, easement or access to other types of infrastructure.

Expectations for BEAD match

Jorge Fuenzalida, managing partner at consulting firm JLA Advisors, told Broadband Breakfast that he expects there to be a total of $20 billion in matching funds, both cash and non-cash to be provided over the course of the BEAD program. He expects that it will be higher than the minimum $14 billion due to the subgrant bidder’s inclination to und at a higher percentage when they have a plant nearby or when the density of the targeting area is higher.

“In general, the more urbanized the area, the higher amount of match,” Fuenzalida predicted. He added that states will likely provide matching funds as well in the form of a non-cash contribution, “such as offering locations, towers, rights of way, and in some cases access to a state-owned fiber network.”

Remaining funds from some of the previous federal programs may be able to be tapped into as matching funds, he said.

Fuenzalida said that the matching fund requirement causes investors and operators to have some “skin in the game” which is a positive motivation to develop high-quality, enduring service. “It will allow entities that have already invested and committed to certain communities have a strong chance to further serve those surrounding areas,” he said. However, small operators without ready access to capital may get outbid by those with greater access to capital.

John Windhausen, executive director of the Schools, Health and Libraries Broadband Coalition advocacy organization, told Broadband Breakfast that he would not expect more than 25 percent match for the BEAD program.

Due to the nature of the BEAD program to finance builds into high-cost, hard to reach areas of the country, there is not likely to be much competition in the program. He claimed that providers will not be incentivized by competition enough to offer higher amounts of matching funds. He added that in more mountainous areas, networks will need to be built from scratch and even a 25 percent match will be a stretch.

Operating costs of these rural networks will be significant as well, he said. The Federal Communications Commission may be obligated to provide support for operating expenses down the road as networks are built in outlying areas, which it is already doing through the high-cost program.

the industry may see waivers for match requirements in certain areas that are hard to reach and so costly that the 25 percent match will discourage applicants. Yet the coalition is primarily concerned with the letter of credit requirement.

Letter of credit

Under current regulations, grant applicants must provide a letter of credit for 25 percent of project costs. This is designed to demonstrate their financial capacity to meet the program’s obligations.

Matching funds provide reassurance that providers and municipalities are invested in the process, said Kelty Garbee, executive director of Texas Rural Funders, a rural advocacy group. “But the letter of credit requirement will make it impossible for many small and rural communities to access BEAD funds.”

The CEO of provider Totelcom Communications, Jennifer Prather, told Broadband Breakfast that “this definitely favors large national providers who have the collateral and banking relationships to easily meet the letter of credit requirements.”

Where can providers find matching funds?

Procuring the required matching funds is a sizable concern for many providers. Experts have suggested a variety of sources, including counties and other federal funds.

Darren Farnan, chief operating officer of rural electric co-op United Fiber, said in a recent “Where’s The Funding?” event that counties can help network operators with the matching piece with money from other federal funds. Missouri counties used Capital Projects Fund and Rural Digital Opportunity Fund money to help with the co-op’s broadband applications.

“Getting counties involved early is extremely beneficial,” he said. He urged providers to build trust and partnerships with county officials. Widespread internet connection cannot happen without utilizing all the funding available to get networks to areas that would never have gotten it otherwise, said Farnan.

He added that electric co-ops are uniquely positioned to fund rural buildouts. Community builds – networks that have 40 to 60 homes per mile rather than the 2 to 4 addresses per mile in extremely rural areas – can be used as a funding mechanism, he said. Community builds balance out homes per mile and can fund networks in extremely rural areas.

This approach is unique to co-ops because they do not operate for profit and can use community builds to subsidize high-cost areas. Co-ops can also offset the cost of both electric and broadband builds by combining the processes and workforce in the company, he concluded.

Savid Johnson of the U.S. Department of Housing and Urban Development added that the Community Development Block Grant program is one of the only federal grant program that allows its funds to be used to meet minimum match requirements for other programs. The program provides annual grants to states and local governments to be used for economic and community development for low and moderate-income individuals.

HUD Community Planning and Development Specialist Erik Pechuekonis, said that the program “can also function as a gap filler so if you don’t get quite enough funding, we can step in and fill that role as well… We generally work well with other federal state programs.”

Connect Humanity Chief Investment Officer Brian Vo has advised providers looking at the looming matching requirement to start “with a conversation on how you want to optimize your capital.” A provider with 10,000 subscribers might be interested in more of a project or revenue-based financing where small providers may want to avoid banks completely due to recessionary and inflation pressure, he said.

Vo added that nonprofit organizations often have greater flexibility in providing funding compared to government agencies and banking institutions, but still require applicants to be knowledgeable about their financial abilities, market conditions, potential partnerships, risks and threats.

Best practices for finding where the funding is

Regardless of where the money is coming from, most experts agree that it is important for providers and potential subgrantees to start the matching process as early as possible by researching funding options and building capital stack and financing resources.

JLA Advisors’  Fuenzalida cautioned that the BEAD process is different from previous broadband programs: “It will take time and effort to identify where you want to bid, what it will cost you to serve, what will be your resulting business case including competition, and finally what level (cash or in-kind) matching funds you will require.”

Providers need to be creative and take a long-term view: “Providing broadband to these unserved and underserved geographies will provide these communities opportunities that will support them and the provider for decades.”

Chris Perlitz, managing director with Municipal Capital Markets Group, talked up the role of municipal bonds for their tax-exempt benefits for investors. Such bonds are debt obligations issued by a municipality. They are often among the most affordable means of raising capital, he said in a “Where’s The Funding?” session.

He predicted that municipally owned or operated broadband networks are the future. Because of that, financing options for the future should leverage the strength of municipalities. “Donations and grant products are usually going to flow toward municipalities much easier than it will to for profits.”

Among the various forms of financing for broadband providers include bank debt, mezzanine debt, convertible notes and equity, added David Hartin, president of ITC Holding, a private equity firm with holdings in telecommunications. Providers must be mindful of the cost per passing and return on investment when participating in grant funding, he continued.

Mezzanine debt refers to debt that offers repayment terms adapted to a company’s cash flows. Convertible notes refer to a type of bond that the holder can convert into common stock in the issuing company or cash of equal value and functions like a hybrid security with debt and equity-like features.

“Make sure your valuation expectations are right,” Hartin said. “There’s so many times that we meet with entrepreneurs and they’re thinking that they heard a valuation that somebody got a couple years ago and just make sure that’s applicable to your business because as you know, the smaller you are, the smaller the multiples will be because there’s less upside.”

Hartin suggested the providers adopt tools to help manage financial management topics such as cash flow, obtaining letters of credit, navigating the current market environment and managing construction costs. He also advised applicants to build relationships with their state broadband offices to discover additional funding sources and consider partnering with private equity firms.

Pierce Verchick, head of broadband lending at LiveOak Bank, said that banks will help providers in whatever way they can to get the money they need to build out BEAD networks, referring to ways banks can help ease letter of credit burdens.

Middle mile program match

Included in the Infrastructure Investment and Jobs Act which authorized the BEAD program was the Enabling Middle Mile program which set aside $1 billion for middle mile infrastructure across the United States. The program reported in June that it nearly doubled the amount of federal funds in private matching totaling $930 million.

In addition to the federal funds awarded, entities brought forth $848 million in other funding. That is the equivalent of 47 percent of the total project cost, or more than 91 percent match of the federal project funds.

The money will support 35 projects across 35 states to invest in the network that connects to last mile infrastructure. The match amount for awarded projects was high because of the competitiveness of the program, said CEO of telecom company Tilson, Joshua Broder. Experts estimate that the ideal investment in middle mile would be close to $7 billion, a $6 billion deficit.

Furthermore, many middle mile projects needed little subsidy to make the investment profitable for providers, added Broder. In contrast, BEAD program investments are last mile networks in unserved or underserved areas which increases cost for build out, making them less economically feasible for providers and thus limiting the amount of match funds available to the projects.

Middle mile had more bidders because it attracts more customers and users with more competition that is easier to finance due to the certainty of return and fewer operating costs in comparison to last mile through the BEAD program, agreed Windhausen.

Mark Goldstein, president at the international research center, said that the 25 percent match in the BEAD program will be difficult for providers to achieve.

Contributing Reporter Teralyn Whipple, who joined Broadband Breakfast in 2022, studied marketing at Brigham Young University. She has reported extensively on broadband infrastructure, investments and deployment. She has also headed marketing campaigns for several small companies.

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Digital Inclusion

Provider Says FCC Should Freeze Affordable Connectivity Program Transfers

After February 7, the FCC is not going to require ISPs to accept ACP transfers.

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Photo of FCC Deputy Bureau Chief Noah Stein from Fordham University

WASHINGTON, January 13, 2024 – The Federal Communications Commission will start to shut down a key internet subsidy program for low-income households early next month, but one provider thinks the agency needs to do more.

The FCC said Thursday that the Affordable Connectivity Program will stop accepting new enrollments after February 7. New internet access providers can’t join the program after that date, either.

According to MVNO provider TruConnect, the FCC needs to broaden its plan. The virtual wireless company said the agency should freeze the ability of current ACP enrollees to transfer their benefits to another internet provider after February 7.

“A benefit transfer freeze during this time is in the best interest of ACP households, ACP providers, program integrity and program efficiency until funding either expires or is reappropriated,” TruConnect’s lawyer Judson H. Hill said in a filing posted on the FCC’s website today.

Hill said he communicated TruConnect’s position on Jan. 9 to Noah Stein, Deputy Bureau Chief of the FCC’s Wireline Competition Bureau, which issued the FCC’s 15-page ACP shutdown order two days later.

FCC’s shutdown order restricts the transfer of ACP benefits

According to the FCC, about 22 million low-income households have enrolled in the ACP, which Congress established in late 2021 with $14.2 billion to take $30 off monthly internet bills. The program’s last full month will be April without new funding by Congress, the FCC said.

The FCC’s rules provide that “households may transfer their ACP service benefit once per calendar month, with limited exceptions.”

In Thursday’s order, the FCC said it would not “require providers to perform transfer-in transactions for enrolled ACP households seeking to transfer their benefit.”

Instead, the FCC said it will allow “providers to choose whether to accept transfers after the ACP enrollment freeze.”

TruConnect didn’t provide any specifics behind its support for a transfer freeze.

In his discussion with the FCC’s Stein, Hill said he “emphasized that once program enrollments are frozen, that to achieve an orderly program wind down until funding expires that the [FCC] should also freeze ACP household subscriber benefit transfers between ACP programs providers.”

TruConnect’s website is effectively a portal to sign up ACP households and includes offers such as free 8 GB of high-speed data, free unlimited talk and text, and an option to buy a tablet for $10.01.

The ACP is administered by the Universal Service Administrative Co. under the FCC’s oversight. USAC’s website does not appear to have information on how many ACP enrollees have transferred to a new internet provider during the 24-month life of the ACP, which was created to help struggling Americans rebound from the pandemic.

Ted Hearn is the Editor of Policyband, a new website dedicated to comprehensive coverage of the broadband communications market. This piece was published on Policyband on January 12, 2024, and is reprinted with permission.

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Broadband's Impact

CES 2024: Industry Wants Federal Data Privacy Law

The current patchwork of state laws makes compliance difficult, said representatives from T-Mobile and Meta.

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Photo of the panel by Jake Neenan

LAS VEGAS, January 12, 2024 – Industry stakeholders called for federal data privacy legislation at CES on Thursday.

“I think oftentimes companies can be in the position of opposing additional regulation at the federal level,” said Melanie Tiano, director of federal regulatory affairs at T-Mobile. “But this is probably one of those areas where that’s not the case, in part because of the flurry of activity going on at the state level, which makes compliance in the U.S. marketplace extraordinarily confusing and difficult.”

The New Jersey legislature cleared one such bill on Monday. If that’s signed into law by the state’s governor, it would bring the number up to 13. Federal efforts, notably the American Data Privacy and Protection Act, have stalled in recent years.

“We will continue to be seriously committed to getting legislation done in a bipartisan way. That’s not always easy right now, but we’re continuing to work on that” said Tim Kurth, chief counsel for the House Innovation, Data and Commerce Subcommittee.

Simone Hall Wood, privacy and public policy manager at Meta, said “privacy regulation should not inhibit beneficial uses of data.” The company has argued it has a legitimate interest in data use practices that the European Union has found to be out of compliance with its data privacy law, the GDPR.

Industry groups, including the Consumer Technology Association, which runs the CES conference, have advocated for a light-touch privacy law in the United States, in contrast with the more comprehensive European standard.

Kurth had similar thoughts Thursday, saying the GDPR “really hurt startups and really hurt innovations.”

Still, Woods said establishing a uniform standard is something the law does well.

“It sets certainty across the marketplace for what privacy protections look like for consumers. And so that aspect of it is positive,” she said.

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Broadband's Impact

CES 2024: NTIA and House Commerce Weigh in on Spectrum Policy

Reinstating FCC auction authority is the ‘number one priority’ of the Energy and Commerce Committee Chair.

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Photo of the panel by Jake Neenan

LAS VEGAS, January 12, 2024 – A senior National Telecommunications and Information Administration advisor and the chief lawyers for both Democratic and Republican sides of the House Subcommittee on Communications and Technology talked about their spectrum policy priorities on Thursday at CES.

The group touted U.S. wins at the World Radiocommunication Conference in Dubai, as well as lawmakers’ goals for spectrum auction authority heading into 2024.

World Radio Congress

Going into the conference, in which representatives from around the world meet to coordinate spectrum usage, “the 6 GigaHertz (GHz) issue was the top priority of the U.S. government,” said Phil Murphy, a senior advisor at the NTIA.

The band was set aside in 2020 by the Federal Communications Commission for unlicensed use in the United States, but some countries like China wanted to see some of the band tapped for 5G mobile use, Murphy said.

The U.S. delegation was ultimately able to deliver in December: the conference decision set aside 700 MegaHertz (MHz) for mobile, but left the door open for regulatory agencies to approve unlicensed use throughout the band.

That’s a win for the American Wi-Fi industry: the Wi-Fi alliance announced its official Wi-Fi 7 certification on Monday ahead of the tech conference. The new generation supports wider spectrum channels and multi-link operation, both of which will make use of the 1,200 MHz of real estate in the 6 GHz band.

“We’re really excited by the results,” Murphy said. “We’re really excited to see 6 GHz moving forward, not just here in the United States, but in other parts of the world as well.”

Auction authority

The Federal Communications Commission’s authority to auction and issue licenses for the commercial use of electromagnetic spectrum expired for the first time in March 2023. That’s not an issue for technologies like Wi-Fi, which don’t require such licenses to operate in bands set aside for unlicensed use, but it is important for ever-expanding 5G networks and wireless broadband.

“The Chair’s number one priority is to reauthorize the FCC spectrum auction authority that expired in March,” said Kate O’Connor, chief counsel for the Republican majority on the communications and technology subcommittee. “Even if it hasn’t been public, there’s been a lot going on behind the scenes.”

Jennifer Epperson, chief counsel for the Democratic side of the subcommittee, and Murphy, the NTIA advisor, agreed on the importance of the issue. 

“I think reauthorizing the FCC’s spectrum auction authority is a priority for the administration as well,” he said. “There’s probably spectrum that the FCC has available to auction right now, but they can’t because they don’t have the authority to do so.”

At a House oversight hearing in November, FCC Chairwoman Jessica Rosenworcel said “I have a bunch of bands sitting in the closet at the FCC,” pointing to 550 MHz in the 12.7-13.25 GHz band as spectrum the agency could go to auction with “relatively quickly.”

Efforts at blanket reauthorization have stalled publicly since a bill cleared the House Energy and Commerce Committee in May, but a stopgap measure allowing the Commission to issue licenses that had been purchased before the lapse was signed into law in December.

“With the funding bills coming up, we’re taking a look and hoping that we can turn this on as soon as possible,” O’Connor said.

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