Why would the FCC even consider giving away the 4.9 GHz spectrum band?

OPINION:

A valuable piece of the spectrum band that supports public safety is in danger of being given away to a huge telecom corporation to use as it sees fit. The FCC should reject this plan to prioritize the welfare of U.S. communities and taxpayers above corporate profits.

For over two decades, the 4.9 GHz band has been dedicated to supporting the operations of public safety entities in mission-critical communications. There are currently more than 3,500 local licensees engaged in daily activities that protect life, health, and property. Major public transportation services, including the New York City subway system, also rely on the 4.9 GHz band. Significant investments of limited public resources have been made in the band, resulting in various advanced, locally controlled applications.

However, despite this spectrum band’s important role in serving the public, the FCC is now considering a proposal to let the public-private partnership FirstNet manage the 4.9 GHz band. If the FCC adopts that proposal, it will essentially amount to a taxpayer-funded gift to AT&T, the telecom giant with an exclusive contract with FirstNet. Based on prices paid in a recent auction for C-band spectrum, the typical way the FCC allocates spectrum rights, the 4.9 GHz bandwidth in question would be worth about $14 billion.

Public safety and other public-service groups have flooded the FCC with comments expressing their disapproval of this plan, which would eliminate local control of a critical spectrum resource. Police departments, fire departments, and local transit authorities have all protested, fearful that handing the 4.9 GHz band over to AT&T/FirstNet would disrupt their operations.

Taxpayers should also be sounding the alarm. At a time when the United States faces unprecedented fiscal challenges, the FCC is on the verge of giving away a valuable public resource to a wealthy private sector company without requiring them to pay a dime.

The FCC has conducted public auctions of radio spectrum for decades, bringing in billions of dollars in earned revenue to support the federal budget. That budget has never needed more revenue than it does right now. Federal spending outpaces revenues by well more than $1 trillion a year. The total national debt is in excess of $34 trillion. The interest on the debt alone came to $658 billion in 2023, up 38% from the previous year.

If the FCC were to hand a $14 billion windfall to AT&T, a corporation with a current market cap of $136 billion, it would be a slap in the face to taxpayers. The FCC must realize that Americans are fed up with corporate welfare; a federal agency should do anything possible to relieve taxpayers’ pressure. This proposal would do the opposite.

At the very least, if the FCC decides to take the 4.9 GHz band away from local agencies, it should do so in a way that brings in revenue to ease burdens on taxpayers. Anything else would be the height of big government indifference to the best interests of the American public they are supposed to serve.

• J. Kenneth Blackwell is the former secretary of state of Ohio and a former mayor of Cincinnati, Ohio.