{"id":38087,"date":"2025-07-01T14:52:24","date_gmt":"2025-07-01T14:52:24","guid":{"rendered":"https:\/\/publicknowledge.org\/?p=38087"},"modified":"2025-07-02T14:52:08","modified_gmt":"2025-07-02T14:52:08","slug":"how-president-trumps-budget-bill-jeopardizes-wi-fi-and-how-we-got-here","status":"publish","type":"post","link":"https:\/\/publicknowledge.org\/how-president-trumps-budget-bill-jeopardizes-wi-fi-and-how-we-got-here\/","title":{"rendered":"How President Trump\u2019s Budget Bill Jeopardizes Wi-Fi, and How We Got Here"},"content":{"rendered":"\n

This week or next, the U.S. Senate is poised to vote on the \u201cOne Big Beautiful Bill\u201d Act to fund the government, including a portion<\/a> drafted by Senator Ted Cruz (R-Texas) that would both jeopardize the future of Wi-Fi<\/a> and threaten to kill the growth of private networking<\/a>. Because spectrum auctions allow the government to get revenue without raising taxes, spectrum auctions frequently show up in budget bills. This need to keep \u201cscoring\u201d (raising revenue) for auctions explains why Congress keeps reauthorizing spectrum auctions every 10 years, rather than making the Federal Communications Commission\u2019s spectrum auction authority permanent. As I\u2019ve said before, in effect, this amounts to treating spectrum as a piggy bank<\/a> rather than a vital national resource, which makes for lousy spectrum policy.  <\/p>\n\n\n\n

In this blog series, I want to describe how Sen. Cruz\u2019s bill language is a loss for consumers and many industries \u2013 and why we need to immediately kick this language out of the budget bill before it\u2019s too late. That doesn\u2019t leave us much time. Public Knowledge just issued a call to action<\/a> focusing on the threat to the future of Wi-Fi, but we also need to save the Citizens Broadband Radio Service<\/a> and keep the public interest language in the existing Communications Act as is, rather than replace it with the Sen. Cruz language that favors selling off our public airwaves to the highest bidders.<\/p>\n\n\n\n

In this blog post, I provide the necessary background on spectrum and spectrum politics that brought us here so we\u2019re all on the same page on what to do about it. In the second post<\/a>, I\u2019ll discuss how the Sen. Cruz language will likely cripple the ongoing deployment of gigabit Wi-Fi, such as Wi-Fi 6E and Wi-Fi 7 (and any future upgrades). In the third post, I\u2019ll cover the importance of CBRS and why carriers like AT&T (with the help of folks like Sen. Cruz) have been gunning for it \u2013 and why we need to save it.<\/p>\n\n\n\n

Remind Me About \u201cSpectrum\u201d Again?<\/strong><\/p>\n\n\n\n

Spectrum is short for \u201celectromagnetic spectrum,\u201d also known as \u201cwireless capacity\u201d or as \u201cthe public airwaves.\u201d Communications technologies like Wi-Fi, radio, and even garage door openers rely on this invisible spectrum to function. Unfortunately, the range of electromagnetic waves that technology can use is limited, making spectrum an essential but (with existing technology) finite resource. As our wireless world grows, finding ways to free up spectrum<\/a> becomes increasingly important. You can read a good technical description and history in our white paper, \u201cBack to the Spectrum Future: How a Public Interest Framework Can Create a Wireless Future that Benefits Us All<\/a>,\u201d to learn more. To understand what is going on here in Sen. Cruz\u2019s new spectrum language, and why it matters, you need to know the following.<\/p>\n\n\n\n

Every wireless device uses spectrum<\/em><\/strong>.<\/strong> Whether it\u2019s your cell phone, your Wi-Fi, or your microwave, every device needs to have a set of wireless frequencies on which to operate. We can vary how the device operates in a number of ways. The most basic is by moving up the frequency chart and allocating more or less frequency for a device. To simplify this, imagine a straight line with the lowest set of radio frequencies (about 8 kilohertz, or KHz) on one end with the highest set of frequencies the FCC allocates for various devices and purposes (around 275 gigahertz, or GHz) on the other end. (You can see this explanation and the FCC\u2019s allocation chart here<\/a>.)<\/p>\n\n\n\n

Every wireless device has to have some spectrum to work \u2013 that is what makes it a wireless device. However, if too many devices are trying to use the same set of frequencies (a \u201cband\u201d or \u201cblock\u201d of spectrum), the devices can get confused and work less efficiently or even stop working altogether<\/em>. This effect is called \u201cinterference.\u201d While all devices experience some kinds of interference (random bursts of radio waves occur naturally for a variety of reasons), intense use can make the situation worse. For example, if you have lots and lots of Wi-Fi devices trying to use the same spectrum band at the same time, they will eventually start crowding each other out and your Wi-Fi will slow down. The same thing can happen with cell phones \u2013 that\u2019s why you may struggle to get connected if you and thousands of other people at an arena are all using your phones at once. And with traditional radios, you can get static.<\/p>\n\n\n\n

The bottom line is that the FCC has to balance how to allocate spectrum between different services and uses.<\/p>\n\n\n\n

\u201c<\/strong>Licensed\u201d versus \u201cunlicensed\u201d spectrum<\/em><\/strong> <\/strong>(and everything in between)<\/em><\/strong>. FCC rules come in two basic flavors. For most uses of spectrum \u2013 especially high-power uses \u2013 you need a license from the FCC. A license generally gives the licensee the right to operate on particular frequencies at the specified power. An exclusive license means no one else gets to operate on those frequencies. Back in the old days, this was how we divided up radio and TV broadcasting (and why we have so few television channels and radio stations). The FCC said, \u201cThis set of frequencies gets used for TV. We are dividing the frequencies up into channels, and creating a set number of channels in any given market. And then that\u2019s all the spectrum for this purpose there is.\u201d If you were one of the lucky people who got a license when the FCC was giving them away, or you bought a license from someone who had one, then you got to operate your radio or television station. If you go ahead and broadcast without a license, you are a \u201cpirate\u201d broadcaster, in violation of federal law and subject to massive fines.<\/p>\n\n\n\n

As more people wanted to use spectrum for different things, the FCC would find a new set of frequencies, divide them up, set rules, and give out licenses. For example, when firefighters wanted a two-way service so firefighters could talk to fire trucks and fire trucks could talk to fire stations, the FCC found some spectrum and gave licenses to fire stations. When taxi drivers needed radios, or garbage trucks, or whoever, the FCC would find some spectrum for them and give them licenses. <\/p>\n\n\n\n

And yes, the FCC gave these licenses away for free. I will not go into the rather complicated details of how the FCC did this and how it changed over time. Suffice it to say that television and radio broadcasters and public safety folks and a number of others got their licenses for free. As more people wanted to use spectrum for different purposes, the \u201cgive it away for free\u201d thing became a serious problem. At one point, the FCC literally had lotteries for licenses that people would then turn around and sell to companies that actually wanted to use them. <\/p>\n\n\n\n

License auctions<\/em><\/strong>. Back in 1993, however, Congress decided to stop giving licenses away for free and instead to auction them to the highest bidder. Mostly (and these days almost entirely), these licenses get auctioned for billions of dollars to the giant phone carriers. Remember, you can\u2019t operate a mobile service without access to spectrum<\/strong>, so you either win licenses at auction, buy them from somebody who won them, or resell someone else\u2019s wireless network.<\/p>\n\n\n\n

This is why we have so few wireless carriers. To operate a mobile service, you need lots of exclusive spectrum licenses in every market in the United States. So AT&T spends lots of money to get lots of licenses, then sells you access to that wireless capacity as cell phone service (recouping the costs of the licenses, the cost of building the network, and then adding in a nice-sized profit margin because \u2013 as previously mentioned \u2013 there just aren\u2019t that many licenses so there isn\u2019t serious competition).<\/p>\n\n\n\n

Because these licenses create little government monopolies to operate on certain frequencies in the specified geographic area, there are very few of them for any location. Typically, the FCC takes a block of spectrum, say from 3.45 GHz -3.55 GHz<\/a>, and divides it into channels (say 10 MHz each) with each channel covering a geographic license area<\/a>. For the 3.45 GHz auction, the FCC divided the 100 MHz into 10 MHz channels, each covering a \u201cpartial economic area. Whoever has the highest bid for each channel block gets to use that channel block of spectrum in the geographic area covered by the license, in accordance with the rules set by the FCC. And, even more importantly, no one else gets to use it<\/em><\/strong> <\/strong>but the winner. That makes each block of spectrum extremely valuable.<\/p>\n\n\n\n

As you can see from the results<\/a> of the last FCC spectrum action, carriers paid a combined $22 billion for these spectrum blocks. This makes spectrum auctions a very big deal<\/em><\/strong> whenever Congress wants to raise money. (More on that later.)<\/p>\n\n\n\n

Unlicensed spectrum<\/em><\/strong>. Fortunately, there is an alternative to exclusive-use licensed spectrum. Because engineers and lawyers are so incredibly imaginative, we call this other type of spectrum \u201cunlicensed spectrum.\u201d (Sometimes it\u2019s called Part 15<\/a> spectrum, for the relevant section of the FCC\u2019s rules.) Unlicensed spectrum operates at very low power (compared to licensed spectrum). Rather than get a band exclusively assigned for unlicensed use like exclusive licensed spectrum, unlicensed spectrum operates as an \u201cunderlay\u201d in other bands or shares with federal users. You can use unlicensed spectrum for anything you want, provided you obey the following three rules: <\/p>\n\n\n\n

(a) If you interfere with a licensed service, you are the one who has to stop operating. It doesn\u2019t matter if you are following all the rules and doing everything right. Licensed services get protected at your expense. <\/p>\n\n\n\n

(b) You have to accept any interference that comes your way. You get zero protection. And,<\/p>\n\n\n\n

(c) You have to obey all FCC rules. So no messing with the device to jack up the power. And in cases where the FCC imposes special rules, like needing to coordinate through an online database to avoid potentially interfering with licensees as the FCC did in the 6 GHz band<\/a>, then you have to follow that rule.<\/p>\n\n\n\n

As a result of the open availability of unlicensed spectrum, it has become the home of Wi-Fi, Bluetooth, and virtually every radio-controlled device. This adds lots of value to the economy and our personal lives (a 2022 report<\/a> estimates about $100 billion annually, for example, whereas this more recent report<\/a> \u2013 which includes the 6 GHz band \u2013 estimates that by 2027, unlicensed spectrum will contribute $1.29 trillion <\/strong>to the nation\u2019s GDP). More importantly, virtually every electronic device and appliance being built assumes that we will have ubiquitous Wi-Fi capable of supporting all our streaming, gaming, and even dishwashing needs. Heck, Wi-Fi is so associated with internet access that people use the two terms interchangeably<\/em>. <\/p>\n\n\n\n

Unfortunately, because we don\u2019t auction unlicensed spectrum (which is why it works like it does<\/a>), all these benefits don\u2019t show up in the Congressional Budget Office score<\/a> for this bill. So it is much easier to persuade members of Congress in a budget crunch to auction spectrum for a quick money payout than it is to permit unlicensed spectrum to maximize value to the economy and the public, generally. Also, after more than 30 years of lobbying to get more spectrum for auction, the wireless companies are really good at it. Despite admitting to shareholders<\/a> that they have plenty of spectrum, they are still going to get their \u201cspectrum pipeline\u201d at the expense of the military and everyone else. All of this makes fighting to protect existing unlicensed spectrum, let alone getting more of it, rather difficult for groups like Public Knowledge advocating to ensure the public benefits from the public\u2019s airwaves.<\/p>\n\n\n\n

There is \u201cfederal\u201d spectrum and \u201ccommercial\u201d (non-federal) spectrum<\/em><\/strong>. <\/em>Finally, to understand how the spectrum budget fights work, you need to understand \u201cfederal\u201d spectrum versus \u201cnon-federal\u201d (or \u201ccommercial\u201d) spectrum. As mentioned above, spectrum is not an actual thing. You cannot mine more of it or synthesize it when you need it. So to find spectrum to auction, you need to reallocate from someone currently assigned the use of the band and take it back from them. While that can include reclaiming spectrum from other commercial users (like when the FCC took back 200 MHz of spectrum from satellite users for the \u201cC-Band\u201d auction<\/a> a few years back). But the major target is the federal government, particularly the Department of Defense. The DOD holds a lot of spectrum in the bands that wireless companies would like to have for themselves \u2013 this has to do with the physics of spectrum, which I will mercifully spare you. But to understand what is going on, you need to know that \u201cmidband\u201d spectrum, which lies between 1.3 GHz and 10.5 GHz, has the best physical propagation characteristics for wireless data use. That means the licensed guys, the unlicensed guys, and the DOD all want it for their own ends.<\/p>\n\n\n\n

The Department of Defense explains that they actually use spectrum for things like radar and top-secret activities related to national security. They, therefore, cannot give up any spectrum for auction without really horrible <\/em>consequences they also cannot explain or even hint at<\/em> unless you have Top Secret security clearance. The wireless industry consistently maintains that the DOD hoards spectrum, uses it inefficiently, and that it would serve the country better to reclaim that spectrum from the DOD and auction it to the wireless industry so the wireless industry can build out the next generation of wireless technology, win whatever race we are supposed to be winning with China, and \u2013 as an added bonus \u2013 generate billions of dollars for the federal government to pay for whatever Congress has on its legislative Christmas list.<\/p>\n\n\n\n

This, then, turns into a fight where CTIA<\/a>, the wireless trade association (which primarily represents the \u201cBig Three\u201d carriers), lobbies hard with all manner of studies promising Congress huge piles of money and creation of a gazillion jobs if they require the FCC to auction more spectrum. The DOD insists that giving up more spectrum will compromise national security, and that it would cost huge piles of money to move the current national security spectrum activities to a new band that already has its own national security spectrum activities \u2013 assuming it\u2019s even possible in the first place. (For an auction to work, it must make 110% of the cost of moving the federal users. Remember that auction<\/a> that made $22 billion? It cost $14 billion to move whatever the DOD was doing in the 3.45-3.55 GHz band down to the frequencies immediately below it.)<\/p>\n\n\n\n

Along the way, folks who favor more unlicensed or otherwise shared spectrum open to the public (such as Public Knowledge, cable companies, and equipment manufacturers) argue that allowing the public to share spectrum with the DOD on a non-interfering basis would make more sense. It would avoid the expense of moving federal operations, while providing much needed spectrum access for Wi-Fi or other innovations.<\/p>\n\n\n\n

CBRS and \u201clicensed by rule.\u201d<\/em><\/strong> <\/em>Finally, the last spectrum you need to know about to understand our story and the threat to Wi-Fi and private networks is \u201clicensed by rule.\u201d Invented by Congress in 1982 to deal with Citizens Band Radio and codified at 47 U.S.C. \u00a7 307(e), licensed by rule is halfway between unlicensed spectrum and licensed spectrum. On the one hand, it is open to the public to use (subject to the FCC\u2019s rules) and can use higher power than unlicensed spectrum and gets some interference protection. This makes it cheap and customizable for either Wi-Fi, LTE, or any kind of future spectrum innovation. On the other hand, it has to protect anyone with an exclusive license or any federal users.<\/p>\n\n\n\n

The FCC used this license-by-rule power to create the Citizens Broadband Radio Service (official FCC explainer here<\/a>; more useful explainer here<\/a>) between 3.55 GHz and 3.7 GHz. This 150 MHz band has become a very useful band for wireless internet service providers in rural and Tribal areas to provide fixed wireless broadband (these WISPs, or wireless ISPs, and Tribes can\u2019t afford exclusive licenses and don\u2019t want to serve the entire license area \u2013 just their local community). CBRS also has a bunch of other important uses that can be lumped together as \u201cprivate networking\u201d \u2013 airports, sports stadiums, industrial shipping centers, and warehouses build networks to do things that Wi-Fi is too weak to do and that the Big Three either won\u2019t do or want to charge an arm and a leg to do (because when you have control of the spectrum access, you can charge what you want \u2013 and need to in order to recoup those billion dollar auctions). But as about half of the CBRS band is open to the public, anyone can use it for whatever purpose without asking permission.<\/p>\n\n\n\n

Since the FCC first authorized CBRS in 2015, CTIA has invested lots of lobbying time and money loudly telling everyone that CBRS is a big fat failure and the FCC ought to take the 150 MHz back and auction it off to them. (There are licensed users in the bottom half, who will be important to our story later.)<\/p>\n\n\n\n

Do I Finally Know Enough About Spectrum To Know What\u2019s Going On and Find Out Why the Future of Wi-Fi (and this CBRS thing) Are in Mortal Danger Thanks to Ted Cruz?<\/strong><\/p>\n\n\n\n

Almost. The last thing you need to know is that, rather than give the FCC permanent auction authority, Congress has the authority to conduct auctions that expire every 10 years. Why? Stupid accounting tricks<\/a>. Every time Congress renews the FCC\u2019s auction authority, it gets to count projected future auction revenue as part of the Congressional Budget Office \u201cscore\u201d for the bill. If Congress made auction authority permanent, they could get a relatively big positive budget score once. By renewing the auction authority every 10 years, they get to take the score repeatedly, augmented by whatever specific bands they designate for auction, plus more to adjust for inflation and for the increased demand for spectrum access. In other words, renewing the FCC\u2019s auction authority repeatedly makes Congress look like it\u2019s saving more money than it really is.<\/p>\n\n\n\n

Spectrum auction authority needed to be renewed in March 2023. But by then, the fight between the DOD and the commercial wireless industry was raging out of control. The FCC is under the jurisdiction of the Commerce Committee. The DOD is under the jurisdiction of the Armed Services Committee, which looks out for the DOD\u2019s interest. As it is always easier to block something than to get something passed, the Armed Services Committees in the U.S. House (HASC) and Senate (SASC) were able to block renewal of the FCC\u2019s auction authority. The FCC cannot conduct any more spectrum auctions until Congress reauthorizes the agency to, so for two years, we\u2019ve had a standoff between the Commerce Committees and the Armed Services Committees.<\/p>\n\n\n\n

In particular, Senator Ted Cruz (at the behest of CTIA) kept insisting on a \u201cspectrum pipeline\u201d that would require the military to give up lots of spectrum for auction. To protect the military, the SASC kept blocking reauthorization.<\/p>\n\n\n\n

Then came the Big Beautiful Bill Act of 2025. This created the pressure to break the deadlock. Unfortunately, it gave Senator Cruz the leverage to go way beyond what the House bill authorized for a spectrum pipeline, which is why the future of Wi-Fi and the future of CBRS are both in serious danger.

Coming up next: “Ted Cruz Wants To Sell Your Wi-Fi to AT&T. This Will Make Your Wi-Fi Suck and Your Mobile Bill Higher<\/a>.” It\u2019s also not too late to stop him<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Sen. Cruz is working to lower your Wi-Fi quality at home by selling off our public airwaves to the highest bidders. It’s not too late to stop him.<\/p>\n","protected":false},"author":14,"featured_media":23976,"parent":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[15],"class_list":["post-38087","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights","tag-spectrum-policy"],"acf":[],"yoast_head":"\nHow President Trump\u2019s Budget Bill Jeopardizes Wi-Fi, and How We Got Here - Public Knowledge<\/title>\n<meta name=\"description\" content=\"Public Knowledge promotes freedom of expression, an open internet, and access to affordable communications tools and creative works. 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