Foreign Satellite Operators’ Scheme is Bad for Taxpayers
The C-Band Alliance (CBA), a coalition of foreign operated satellite companies, is lobbying the Federal Communications Commission (FCC) in hopes of convincing them to grant the authority to re-sell on the secondary market a crucial U.S. asset, mid-band (“c-band”) spectrum, for 5G deployment. While this may sound good on paper, this group of foreign actors is lobbying the FCC to allow for a massive billion-dollar taxpayer rip off.
In the past, the FCC has overseen public, fully transparent spectrum auctions which deliver profits right back to the U.S. Treasury and taxpayers’ pockets. The FCC must not change course now, especially when taxpayers stand to lose the most at the expense of foreign actors.
The Taxpayers Protection Alliance (TPA), along with over one dozen consumer, small business and free market groups earlier this month wrote a letterto the FCC concerning the alliance’s efforts to free up the 3.7 to 4.2 GHz Band for internet services, specifically for 5G deployment.
The problems with the CBA’s plans are numerous. But first and foremost, the alliance’s intention to re-sell on the secondary market would result in a multi-billion dollar rip off for the U.S. taxpayer. Over half a century ago these four foreign satellite companies were given the spectrum for no cost. Now, recognizing the value of the spectrum, the C-Band Alliance is hoping to score a big profit through a re-sale.
The letterurged Commissioners to recognize the dangers posed to taxpayers and consumers should the alliance re-sell this spectrum on the secondary market, rather than through an FCC-led auction, which guarantees transparency and a level playing field for those who wish to bid and purchase the spectrum.
This spectrum is a crucial, valuable U.S. asset and must be treated by the FCC as such. The FCC must not allow foreign companies to swindle taxpayers and further slow 5G deployment for foreign actors’ monetary gain. Instead, the Commission must focus on open auction proceedings that promote transparency and benefit the American taxpayer by potentially generating upwards of $10 billion of dollars.
Taxpayers Protection Alliance is committed to taxpayer protection in all spaces, most especially as the U.S. continues on to the race for 5G. C-Band Facts will continue to provide educational material for citizens and government officials about the need to protect taxpayers and ensure that they are compensated for C-Band spectrum through a public, transparent FCC-led auction.
