A bipartisan, bicameral bill sponsored by U.S. Sen. Cory Gardner (R-CO) and U.S. Rep. Leonard Lance (R-NJ) that would prompt the government to auction vacant spectrum and make available other spectrum for next-generation 5G wireless broadband stands to massively impact the nation’s economic growth, according to a study released on Oct. 18 by the Competitive Carriers Association (CCA).
The Advancing Innovation and Reinvigorating Widespread Access to Viable Electromagnetic Spectrum (AIRWAVES) Act, S. 1682/H.R. 4953, could generate billions in economic activity and create 9,700 new jobs, according to Assessment of the Economic Impact of the Airwaves Act, from authors at Telecom Advisory Services LLC, an international consulting firm, and commissioned by the CCA.
“Several provisions of my bipartisan AIRWAVES bill are now estimated to deliver billions in economic growth from expansion of rural connectivity,” said Rep. Lance, who introduced the House version of the bill on Feb. 6. “The Internet is the lifeblood of today’s economy and passage of AIRWAVES will keep up the economic boom fueled by 21st Century connectivity.”
H.R. 4953 has 53 cosponsors including lead original cosponsor U.S. Rep. Michael Doyle (D-PA). S. 1682, introduced by Sen. Gardner on Aug. 1, 2017, has 11 cosponsors, including lead original cosponsor U.S. Sen. Maggie Hassan (D-NH).
“This plan has gained bipartisan support because it represents a common sense approach that could expand mobile broadband connectivity without any cost to taxpayers, and positions the United States at the forefront of the global telecommunications revolution,” wrote Sens. Gardner and Hassan in an Aug. 7 commentary for The Hill.
The study found that combining upcoming Federal Communications Commission (FCC) auctions with other planned spectrum auctions will translate to a $2.86 billion capital infusion that will mean a $4.9 billion bump in gross domestic product (GDP).
“AIRWAVES is going to bring new and better coverage by helping deploy 5G networks, resulting in an explosion of economic growth,” said Rep. Lance, vice chairman of the U.S. House Energy and Commerce Communications and Technology Subcommittee, which is reviewing H.R. 4953.
“We’re also going to reduce the rural coverage gap dramatically and deliver reliable service that many consumers are waiting for,” the lawmaker said.
The measure would direct the federal government to free up additional spectrum – which connects consumers with high-speed internet — for commercial use and use a portion of the proceeds of spectrum auctions held by the FCC to help close the urban-rural digital divide, according to the congressman’s office.
“In consequence, additional 4G coverage derived from AIRWAVES investment will grow output by up to $2.45 billion in agriculture, $ 6.56 billion in health care, and $1.75 billion in transportation,” according to the study. “Within a more likely scenario, the impact would be $1.25 billion in agriculture, $3.35 billion in health care, and $0.89 billion in transportation.”
The bill also would reduce the rural coverage gap by 12 percent to 24 percent, according to the study, which noted that its analysis relates to two of many proposed provisions in the bill.
Specifically, the estimated economic impact of the proposed AIRWAVES Act is based on predicted results for just two auctions because it’s too soon to make forecasts beyond that, authors of the report wrote.
“This report reaffirms that the bipartisan AIRWAVES Act will make meaningful investments in rural broadband infrastructure, and in turn have a ripple effect on our economy in New Hampshire and throughout the United States,” said Sen. Hassan last week. “I’ll keep working to move this legislation forward in order to turn the potential positive economic impact of this bill into a reality.”
S. 1682 is under consideration by the U.S. Senate Commerce, Science, and Transportation Committee.