DOGE Should Focus On Wasted Federal Spectrum.
By Lawrence White and Thomas Lenard
DOGE should live up to its name and propose lasting reforms that improve government efficiency. Freeing up federal spectrum for commercial uses presents such an opportunity. For that to happen, however, the agencies that control much of the nation’s spectrum need a better incentive to give some of it up.
Spectrum is the foundation for the ubiquitous wireless technologies that have become essential for businesses and consumers. Federal agencies also are major users of spectrum: it is an important input for mission-critical activities performed by the Department of Defense, the Federal Aviation Administration, the National Oceanic and Atmospheric Administration, and many other agencies. In fact, the government controls about 60% of the most desirable mid-band spectrum. But since there is no market test, we don’t know whether the agencies that control this spectrum are using it efficiently (or even, due to lack of transparency, whether they use it at all) or whether the allocation of spectrum between the public and private sectors is efficient.
We do know that companies would be willing to pay a lot for some of the government’s spectrum. For example, a recent estimate placed the value of the private-sector company Dish’s similar spectrum holdings at between $57 and $90 billion, depending on when it was sold.
Read the full Real Clear Markets article.
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Lawrence White is the Robert Kavesh Professorship in Economics and the Deputy Chair, Economics.