We support efforts to upgrade broadband infrastructure, ensuring nationwide access to fast, reliable internet.
Executive Summary
Born between 1997 and 2012, Gen Z represents about 20% of the U.S. population and is the most connected age group to broadband. As this key demographic develops educationally and professionally, access to high-quality connectivity becomes more crucial to the economic success of American innovation. The Spectrum Pipeline Act of 2025 is pivotal legislation aimed at extending the Federal Communications Commission's (FCC) spectrum auction authority and ensuring the efficient allocation of mid-band spectrum to meet the increasing demands of connectivity. The auction authority of the FCC functions via a government-run process that sells the right to use specific radio frequencies, such as mid-band spectrum, to wireless communications providers. Mid-band spectrum’s unique range of radio frequencies (between 1 and 6 gigahertz (GHz)) makes it exceptionally ideal for 5G because of its ability to carry large amounts of data over long distances. This initiative is essential for advancing 5G and next-generation technologies, thereby enhancing connectivity, fostering innovation, and promoting economic growth.
Background
Introduced by Congressman Rick W. Allen (R-GA-12), Vice Chairman of the House Committee on Energy and Commerce’s Communications and Technology Subcommittee, the Spectrum Pipeline Act aims to curtail connectivity congestion by directing the National Telecommunications and Information Administration (NTIA) to identify at least 2,500 megahertz of mid-band spectrum for reallocation from federal to non-federal or shared use within the next five years. The bill would also renew the FCC's auction authority, which expired in March 2023, requiring the auction of at least 1,250 megahertz of spectrum for commercial wireless services, including 5G, within six years. Additionally, the Spectrum Pipeline Act would promote unlicensed innovation by allocating at least 125 megahertz of spectrum for unlicensed services.
The wireless industry is a key driver of the U.S. economy–contributing $825 billion to GDP and supporting 4.5 million jobs each year. With over $700 billion invested by operators—$30 billion of which was spent in 2023 alone—significant strides have been made in building out 5G networks. NERA’s economic research shows that for every additional 100 MHz of 5G spectrum, $260 billion in GDP, 1.5 million jobs, and $390 billion in consumer surplus can be generated. To meet rising demand, operators will need 400 MHz of mid-band spectrum by 2027, which could add $1.1 trillion to GDP and create 6.18 million jobs. By 2029, the demand for spectrum will increase to 820 MHz, with the need surpassing 1400 MHz by 2032. With spectrum auctions already raising over $233 billion for the government, policymakers should prioritize expanding access to ensure the continued growth of wireless networks and the U.S. economy.
Challenges
The absence of renewed FCC auction authority and a clear spectrum pipeline presents significant challenges. Technological stagnation may occur, as mobile data demands rose by 36% in 2023 compared to 2022, underscoring the urgent need for more spectrum. Without access to additional mid-band spectrum, the deployment of 5G and emerging technologies may be delayed, stifling innovation and the development of applications vital to Gen Z's digital engagement. Economically, limited spectrum availability can constrain the growth of startups and small businesses that rely on advanced wireless technologies, thereby impacting job creation and economic dynamism. Moreover, national security concerns arise, as efficient spectrum allocation is essential for maintaining the United States' competitive edge in wireless communications, especially in strategic competition with nations like China.
Solutions
The Spectrum Pipeline Act offers a comprehensive approach to address these challenges by enhancing connectivity, stimulating innovation, and promoting economic growth. By reallocating mid-band spectrum, the bill facilitates the expansion of high-speed wireless networks, benefiting Gen Z users who depend on reliable internet access for education, work, and entrepreneurship. Renewing the FCC's auction authority and promoting unlicensed spectrum use encourage the development of new technologies and services, providing Gen Z innovators with the necessary resources to create and scale digital solutions. Furthermore, the provisions of the act promote the expansion of the digital economy by ensuring enough spectrum is available to meet rising demand, thereby driving job creation and economic opportunities for the Gen Z workforce. The allocation of additional licensed spectrum will better address consumer needs and fully unlock the potential of the 5G economy.
Policy Recommendations
ZETA urges Congress to pass the Spectrum Pipeline Act of 2025 to restore FCC auction authority, enabling the FCC to manage spectrum resources effectively and facilitate the deployment of advanced wireless services. The act aims to allocate mid-band spectrum to ensure the timely reallocation and auctioning of spectrum to support 5G and next-generation technologies. Additionally, the act promotes unlicensed spectrum use, encouraging innovation by designating additional spectrum for unlicensed applications and fostering a diverse range of services and solutions. By enacting this transformative legislation, policymakers will strengthen the nation's digital infrastructure, promote innovation, and create economic opportunities that are essential for Gen Z's success in the evolving technological landscape. ZETA strongly supports the Spectrum Pipeline Act as a foundational step toward a more connected and prosperous future.
