Recent debates and controversies on Capitol Hill surrounding tax proposals and how to keep the government operating are the most recent of periodic policy battles centered on funding.

It is quite odd, then, that one of the less contentious options for bringing in government revenue is not getting more traction in Congress. Even more so considering its track record of bipartisan support, substantial material success, and economic benefits.

The issue is government auctions of wireless spectrum for internet connectivity.

It may sound mundane compared to the political disputes making headlines, but a closer look at the wide-ranging national and economic security implications reveals the importance of spectrum to America’s future.

Wireless spectrum is the radio frequencies that transmit information, most notably for wireless devices connected to the internet. Spectrum is the foundation for a myriad of economic activity across vital industries. On a personal scale, the average user will feel the impact of spectrum policy for decades due to its role in providing opportunities in education, health care, entrepreneurship, upward mobility, and innovation.

Most Americans have indeed come to understand how they benefit from internet connectivity beyond mere convenience. But with the growing demand from innovations like Artificial Intelligence (AI) and other uses, industry experts warn that the availability of spectrum is running out. Recent research by economic consulting firm National Economic Research Associates (NERA) project that wireless operators will need more by 2027 to meet consumer demand.

That demand matters to populations that still are not reaping the full rewards of increased broadband connectivity. The gap in access to communication technologies— known as the digital divide—hurts millions in underserved communities. Wireless access is an essential component to addressing that disparity. For example, data from Pew Research Center shows that 20% of the Hispanic population relies solely on smartphones to access the internet. Other communities face similar circumstances.

On a global scale, increasing wireless spectrum is interwoven into how competitive the American economy can remain for years to come. NERA highlights that “over the past decade, [the wireless industry] has contributed over $5 trillion to GDP and created 3 million jobs in the United States.”

America’s peers and competitors already understand the importance of wireless licensed spectrum to their economic prospects.  Licensed spectrum refers to portions of the radio frequencies that are legally reserved for a specific use.  France, Japan, South Korea, the United Kingdom, and others are ahead of the U.S. in what they allocate for commercial purposes.  

China, which most economic and political leaders see as our principal rival in terms of economics and international influence, is projected to soon have nearly quadruple more commercial licensed mid-band spectrum for than the United States, according to IT and technology consulting firm Accenture. Chinese leaders clearly understand the role that networking capability will play in economic innovation and growth in a wide array of applications like manufacturing, healthcare, and other industries.

The Center for Strategic and International Studies’ James Lewis lays out the geopolitical circumstances:

The United States is in a global competition with China over markets, rule setting, and technological leadership. Networks and telecommunications, particularly wireless telecom like 5G, are essential tools in this competition, but current U.S. spectrum allocations are not optimized for the contest the United States is in now.

China undoubtedly benefits from American policymakers’ lack of appropriate action. With a cohesive spectrum policy as a foundation, China will be poised to dominate 5G and related global technological markets. That result should be unacceptable to anyone with American national interests at heart.

The good news is that we have the spectrum to meet this challenge. But it needs to be made available. The Federal Communications Commission (FCC) has previously held auctions of licenses for various spectrum bands for use by non-federal users. The FCC’s authority expired in 2023, but Congress can reauthorize it with legislation. Effective action would also include establishing a spectrum pipeline for future use.  Similar legislative efforts have previously earned strong bipartisan support.  

Spectrum auctions are a proven solution. Auctions have brought in over $233 billion to the U.S. treasury, paid by wireless companies, and thus a benefit for taxpayers. Ensuring that all types of companies can participate, including new entrants to the market, increases competition, thereby also benefiting consumers through lower broadband prices.

To wit, how many government policies are there that can claim to be worthy of a Nobel Prize?

NERA’s report outlines the clear benefits can be to the country. “We estimate each additional 100 MHz of mid-band spectrum to mobile will generate $264 billion of GDP, about 1.5 million new jobs, and about $388 billion in consumer surplus.”  

The United States can expand opportunity, increase economic growth, and give itself a boost in global competitiveness by pursuing smart telecom policy that gives wireless spectrum its rightful place, including spectrum auctions and a sustainable pipeline. Congress and other policymakers need to understand the magnitude of what is at stake and act swiftly to benefit all Americans.

Mario H. Lopez is the president of the Hispanic Leadership Fund, a public policy advocacy organization that promotes liberty, opportunity, and prosperity for all.