To keep its wireless edge, the U.S. needs spectrum, speed and smart policy
Wireless technology has become one of the most powerful enablers of U.S. innovation. From connecting students to classrooms and helping fire departments battle wildfires, to making farms more sustainable, cars more autonomous and health care more accessible, 5G is reshaping how Americans live and work. It is also fueling breakthroughs in artificial intelligence and mobile edge computing — technologies expected to define the next era of global competitiveness.
This transformation is reflected in how Americans are using networks today. “All of us are relying on smartphones for an ever-growing range of applications and services, including AI tools that make everyday tasks easier,” said Ajit Pai, president and CEO of CTIA, which represents the wireless industry. And businesses are also rapidly adopting 5G, from automating workflows to deploying robotics and training staff with AR and VR — signaling what Pai called “just the surface” of a much larger shift in enterprise technology.
The demand for this connectivity is skyrocketing. Americans used 132 trillion megabytes of data last year, a new record, with usage on pace to nearly double every two years. Yet while demand accelerates, the supply of licensed, mid-band spectrum — the airwaves that power wireless networks — has remained stagnant. That imbalance is creating a looming bottleneck that threatens to slow U.S. innovation while rivals like China move aggressively to build next-generation wireless infrastructure.
The stakes are enormous: each additional 100 megahertz of licensed spectrum is projected to generate $260 billion in GDP and 1.5 million jobs, while positioning the U.S. to lead in AI and other emerging technologies. Without a steady pipeline of spectrum auctions, experts warn that America’s ability to lead in 5G, AI and the broader digital economy could falter — with consequences for growth, competitiveness and national security.
Against this backdrop, POLITICO’s Cally Baute sat down with Ajit Pai, president and CEO of CTIA and former chairman of the FCC, at the recent POLITICO AI & Tech Summit to discuss spectrum policy, innovation and global competition — and what policymakers must do to keep the U.S. at the forefront of wireless leadership.
There are some basic inputs that have to come together: capital, infrastructure and spectrum. On the capital side, our members have invested heavily — $218 billion since 2018, including almost $30 billion last year alone.
Infrastructure is another key piece. Building towers, cell sites and small cells remains challenging in the U.S. because of a patchwork of state and local permitting rules. Streamlining those processes would make a real difference, so I’m glad to see FCC Chairman Carr advancing a wireless infrastructure reform package that should help speed up approvals and lower costs.
Finally, spectrum is the lifeblood of wireless networks. In recent years the FCC’s auction authority had lapsed, which halted the release of new licensed airwaves. Thankfully that ship has been righted and the reconciliation bill set a critical target of 800 megahertz of mid-band spectrum, which will be essential to propelling wireless innovation in the future. Together, capital, infrastructure and spectrum are critical, and I’m glad to say that on each front, we’re making progress
There are really two aspects to this, one domestic and one global. Domestically, wireless has long propelled economic growth and job creation. It’s not just the billions of dollars our members invest each year in networks, but the second-order effects of what wireless enables. Just think about where we were 10 years ago in terms of the wireless applications and services that we use. That transformation has created significant growth and countless new jobs. And on the enterprise side, industries from manufacturing to logistics are only beginning to tap the potential of 5G and wireless innovation. I’m really excited to see where wireless innovation takes us — we’re just scratching the surface.
One of the key parts of Chairman Carr’s Build America agenda is getting more mobile spectrum into the marketplace. These airwaves belong to the public and should be put to work for the greatest public benefit, and increasingly, that means enabling advanced technologies like AI.
The U.S. has long aspired to lead in technology, and that leadership matters because of everything that flows from it — economic growth, innovation and jobs.
Fifteen years ago, America wrote the 4G playbook, created the mobile app economy and became the hub for wireless innovation. Talent and capital flowed here because this was the best place to build.
That’s the position we want to maintain with 5G, 6G and the technologies that follow. But it’s not guaranteed. China has made leadership in sectors like AI and 5G a national priority, and other countries are moving aggressively as well. To stay ahead, the U.S. needs to ensure we retain the talent and capital that have historically made this the best place in the world to innovate. Ultimately, we want to lead in setting the standards, creating the applications and shaping a wireless future that reflects our values and those of our allies.
Some of the most important steps are already reflected in the reconciliation bill. With bipartisan support and the president’s endorsement, Congress reestablished the FCC’s auction authority, and set an 800 megahertz target for mid-band spectrum, directing that these bands be auctioned within a clear timeframe.
The task now falls to the executive branch and independent agencies, particularly the FCC, to act on Congress’s direction. Chairman Carr has been a consistent voice for forward-looking spectrum policy, from landmark auctions like the C-band to the new bands under consideration. That blueprint for success was clear during the first Trump administration, when the FCC conducted a record number of auctions and positioned the U.S. as the global leader in 5G availability. But now, China has taken the lead, and the U.S. has slipped in the ranks. We, of course, want to right that ship, and I’m confident that with President Trump, Chairman Carr, Senator Cruz and others, we have the leaders in place to do it and the U.S. can regain its position at the forefront of wireless innovation.
Source: Politico.com 6th Oct. 2025
