WASHINGTON, D.C. – U.S. Senator Mark R. Warner (D-Va.) has introduced legislation to create wireless spectrum incentive auctions, which would enable license holders to return their underutilized spectrum to the federal government. The Spectrum Optimization Act would authorize the Federal Communications Commission (FCC) to set up incentive auctions for specific types of spectrum that cannot be freed-up under current law.

The FCC estimates that revenues from the proposed auctions could create value in excess of $100 billion over the next five years. Funds raised from the auctions would be used, in part, toward deficit reduction, to expand broadband access into rural areas or to create a reliable public safety network for first responders and other public safety officers.

“By providing an incentive for license holders to sell their spectrum back to the government, we’ll be able to create new efficiencies in spectrum use,” Senator Warner said. “By all indications, we’re facing a dramatic spectrum crunch over the next decade, and this legislation is a step toward promoting more innovation and creating more economic opportunities as Americans increasingly rely on mobile technology.”

The National Broadband Plan recommended that the Commission make available 500 megahertz (MHz) of new spectrum for wireless broadband, including 300 MHz for mobile flexible use within five years.

“Meeting these aggressive targets will take a lot of effort by all spectrum users, but the alternative is that we’ll stifle future innovation if we let ourselves run out of spectrum in the near term,” Senator Warner said.

The Spectrum Optimization Act is one element of Senator Warner’s proposed spectrum reform policy. Warner believes the FCC should complete its inventory of spectrum holdings and usage by this summer, and he is also working on legislation to encourage greater efficiencies in government uses of spectrum as well as creating incentives for other spectrum licensees to vacate underutilized spectrum.