Summary:
Donald Trump’s recently enacted “One Big Beautiful Bill” (OBBB), signed into law on July 4, 2025, marks a significant legislative shift impacting various sectors, including the crucial telecommunications landscape. For spectrum, the bill primarily restores and mandates the FCC’s spectrum auction authority, aiming to release new bands for 5G and future wireless technologies while raising substantial federal revenue. Its implications for subsea cables are less direct but signal a broader strategy of increased national control over critical digital infrastructure, with potential impacts on international investment and supply chains due to “Buy American” provisions.
What it means for spectrum, subsea cables, and beyond:
The “One Big Beautiful Bill” (OBBB) is a comprehensive piece of legislation that has far-reaching consequences for the U.S. economy, national security, and, specifically, the telecommunications sector. Signed into law by President Donald Trump, the OBBB embodies a strategic pivot towards increased federal control and investment in critical infrastructure, with notable implications for both spectrum allocation and the future of subsea cable networks.
Spectrum: Unlocking Airwaves and Revenue
Perhaps the most immediate and tangible impact of the OBBB on the telecommunications industry is its decisive action on spectrum. The bill restores the Federal Communications Commission’s (FCC) authority to conduct spectrum auctions, which had been stalled due to congressional gridlock. This move is designed to:
- Restore Auction Authority: The OBBB re-establishes the FCC’s ability to auction off valuable electromagnetic spectrum, ensuring a predictable pipeline for wireless carriers. This had been a long-standing point of contention and uncertainty for the industry.
- Mandate New Auctions: The legislation directs the FCC and the National Telecommunications and Information Administration (NTIA) to identify and auction a significant amount of spectrum, specifically targeting 600 MHz of spectrum between 1.3 and 10 GHz by 2034. This is projected to generate substantial revenue for the U.S. Treasury (estimated at up to $88 billion).
- Boost 5G and Future Wireless: The newly available spectrum, particularly in mid-band frequencies, is crucial for expanding 5G capacity and coverage, especially in rural and underserved areas. It also lays the groundwork for future generations of wireless technology, like 6G, by providing the necessary airwaves for advanced applications and increased data throughput.
- Strategic Allocation: While promoting commercial use, the bill also navigates the complex landscape of federal and military spectrum needs. Notably, it largely excludes the Lower 3 GHz band (3.1-3.45 GHz), which is vital for Department of Defense radar systems, from full-power commercial deployments, signalling a careful balance between national security and commercial expansion. However, the inclusion of certain bands, like parts of the 6GHz band, for exclusive auction has raised concerns among groups advocating for unlicensed and shared spectrum use, vital for Wi-Fi 6E and Wi-Fi 7 innovation.
Subsea Cables: A Broader Strategic Shift
While the OBBB does not contain explicit, detailed provisions solely dedicated to subsea cables, its broader themes of national security, critical infrastructure protection, and domestic sourcing have significant implications for this vital segment of global connectivity:
- Critical Infrastructure Control: The bill’s emphasis on tightening control over critical digital infrastructure suggests a renewed focus on the security and resilience of subsea cable networks. These cables are the backbone of global internet communication, and ensuring their integrity is a national security priority.
- “Buy American” Provisions: The OBBB includes “Buy American” sourcing provisions for various infrastructure projects. While the direct application to subsea cable manufacturing and deployment might be nuanced (given the global nature of this industry), it could encourage greater domestic production of components or services related to cable landing stations, network equipment, and maintenance. This could potentially complicate supply chains for international vendors who have not localized manufacturing or integration services within the U.S.
- Investment Incentives and Infrastructure Stimulus: Beyond spectrum, the OBBB provides investment incentives for broadband rollout, particularly in underserved regions. While primarily focused on domestic terrestrial networks, a robust domestic network infrastructure indirectly supports the efficient termination and distribution of data from subsea cables. Targeted tax credits and accelerated depreciation for broadband-related capital expenditures could stimulate overall telecommunications infrastructure development, which benefits the entire digital ecosystem.
- Geopolitical Considerations: The OBBB’s overarching goal of reasserting the state’s role in shaping the future of networks aligns with a global trend of nations seeking greater control over their digital sovereignty. This could influence future international partnerships and investment patterns in subsea cable projects, potentially favouring collaborations that align with U.S. strategic interests and security protocols.
