Walden, Blackburn hawk passage of bill to fix spectrum deposit payments issue

For the Federal Communications Commission (FCC) to hold planned spectrum auctions later this year, Congress should swiftly pass an FCC reauthorization bill now in the U.S. House of Representatives addressing upfront deposit payments, said U.S. Reps. Greg Walden (R-OR) and Marsha Blackburn (R-TN) this week.

The United States plans to hold an auction of spectrum in the 28-GHz band starting in November, quickly followed by a spectrum auction in the 24-GHz band, FCC Commissioner Ajit Pai announced Feb. 26 during the Mobile World Congress in Barcelona, Spain. “For us to start an auction in November, we need the U.S. Congress to pass legislation by May 13 addressing the handling of upfront payments,” said Pai.

According to the FCC, it must deposit upfront spectrum auction payments from bidders into an interest-bearing account. However, current financial regulations don’t allow such upfront payments. Until this is resolved, the FCC can’t set an exact auction timetable. “If we don’t get the problem fixed by May 13, our efforts to realize America’s 5G future will be delayed,” Pai said.

Rep. Walden, chairman of the House Energy and Commerce Committee, and Blackburn, chairman of the House Energy and Commerce Subcommittee on Communications and Technology, don’t want that to happen.

“The race to 5G is a sprint, not a marathon, and the proposed spectrum auctions will help ensure the United States remains at the forefront of this emerging technology,” the lawmakers said in a joint statement released on Feb. 26. “[The] announcement from Chairman Pai is yet another reason to enact the bipartisan RAY BAUM’S Act, which includes the necessary fix to the upfront spectrum deposit payments.”

Specifically, the Repack Airwaves Yielding Better Access for Users of Modern Services (RAY BAUM’S) Act, H.R. 4986, previously known as the FCC Reauthorization Act of 2018, would enable spectrum bidders to make payment deposits directly into the U.S. Treasury rather than to an interest-bearing account as now required, among other provisions, according to the bill’s text.

Rep. Blackburn introduced H.R. 4986 on Feb. 8. The House Energy and Commerce Committee on Feb. 14 approved the measure and sent it to the House floor for consideration by the full House.

“We are continuing to work with all parties to get this important legislation to the finish line,” she and Walden said in their statement.