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America’s Digital Infrastructure Needs a Serious Upgrade
The United States’ infrastructure has been a topic of discussion for quite some time, but the nation’s digital infrastructure is in dire need of an upgrade. This includes the critical networks that underpin commerce, defense, transport, and public safety. Our digital infrastructure sustains innovation power – the ability to invent, adapt, and adopt new technologies – which is integral to our competitiveness and national security in the 21st century.
The Nation’s Digital Infrastructure: A Tale of Two Paths
The United States has been a pacesetter in the digital era, with a sequence of game-changing innovations in cellular technology. The introduction of 2G brought text messaging, while 3G enabled mobile broadband and the rise of BlackBerry devices. However, 4G brought mobile video and the app stores that we know today. However, despite these advancements, the United States is now far behind in technologies like 5G.
According to recent data, the country has less than half the speed of Bulgaria or Malaysia, and just 7% of South Korea’s number of 5G base stations per capita. The Chinese technology firm Huawei has dominated the global market in 5G, but its growth has been hindered by US sanctions. Despite this, the US must acknowledge that it cannot compete against global peers with last-generation digital infrastructure.
The National Spectrum Strategy: A Step in the Right Direction
In response to these challenges, the Biden administration released the National Spectrum Strategy, which reflects a refreshing openness to sharing of spectrum ‘by design.’ The strategy aims to promote competitive access to spectrum and accelerate innovation. However, as FCC chairwoman Jessica Rosenworcel articulated, we need to ‘turn spectrum scarcity into abundance.’
Exclusive use increases scarcity, and the US should avoid it unless there is a clear and credible rationale. Licensing innovation can foster innovation, as seen in the successful Citizens Broadband Radio Service experiment to share spectrum.
Competitive Access to Spectrum: A Key to Innovation
Promoting competitive access to spectrum is crucial to accelerating innovation. The National Spectrum Strategy reflects this commitment, but we can do more. As Eric Schmidt, former CEO of Google, noted, "America’s vast innovation potential has been a powerful engine for prosperity and security. But we can’t compete against our global peers with that engine throttled by last-generation digital infrastructure and policy."
To achieve the ultimate objective – a functional network – we need to devise policies that ensure fast and vast deployment. Perhaps auction payments could be set aside to provide low-cost loans for network development, with strict performance requirements and clawback provisions.
A Functional Network: The Ultimate Objective
A functional network is the ultimate objective of any digital infrastructure policy. To achieve this goal, we must develop creative uses of funds that reduce service costs and incentivize fast and vast deployment. This may result in forgoing some auction revenue, but the lasting economic value created in GDP, productivity, and new products would easily outweigh this shortfall.
Conclusion
America’s digital infrastructure is in need of a serious upgrade. The National Spectrum Strategy is a step in the right direction, but we can do more to promote competitive access to spectrum and accelerate innovation. By acknowledging new realities and playing to our strengths, we can reverse digital infrastructure deterioration and restore America’s innovation potential.
Eric Schmidt: A Brief Bio
Eric Schmidt was the CEO of Google from 2001 to 2011 and executive chairman of Google and its successor company, Alphabet, from 2011 to 2017. He has been a vocal advocate for promoting competitive access to spectrum and accelerating innovation in the digital infrastructure space.
Related Topics
- Data Infrastructure
- Government & Policy
- Tech Innovations
- Wireless
