Finding Balance in Public-Private Partnerships

Recently, I discussed a successful collaboration between the airline and telecommunications sectors that occurred mostly without the influence of Washington, D.C. It’s intriguing to see these industries, which both rely on wireless spectrum, work together to solve shared problems.

What’s noteworthy is that they achieved this with minimal government intervention and little engagement from D.C.’s Lobby Industrial Complex. I often dream of a world where reliance on such lobbying is rare, though I know that’s perhaps a bit unrealistic.

As a realist, I recognize that sometimes government involvement is necessary in private sector initiatives. So the question arises: how can we do this wisely?

We truly need public-private relationships that offer better outcomes for everyone, rather than ones that typically yield gains for a select few, which often ends up costing the rest of us dearly.

South Korea recently provided an excellent example of how to achieve a fair balance. The government and three major mobile carriers have initiated discussions to boost investment in next-generation telecom networks as we step into the AI era. They also reviewed plans to launch a 5G standalone mode later this year.

The Ministry of Science and ICT convened in Seoul to establish a public-private consultative body aimed at enhancing telecom network investments in this new era. This initiative follows a prior meeting between government officials and the carriers’ executives.

It’s interesting to note that South Korea has just three wireless companies compared to around 30 in the U.S., along with over 50 virtual operators leasing from those. Makes you think about market dynamics, doesn’t it?

While I don’t believe we need an official consultative body like South Korea’s, I admire how the Korean government and telecom providers collaborate to advance their country’s interests.

There are moments when similar cooperation occurs here—particularly in the United States’ efforts to enhance wireless technology.

Spectrum is vital for all wireless communications, but it’s a limited resource. Currently, the federal government manages about 60% of the spectrum. Interestingly, they don’t actually require that much for their operations.

This calls for a consolidation of their spectrum usage, freeing up more for private telecommunications companies.

The Trump Administration has been relatively effective in identifying available spectrum and auctioning it to private providers, who then integrate it into our national wireless networks—leading us into the next generations of wireless technology.

This is a public-private partnership that deserves recognition—it’s a solid example of collaboration without the taint of corruption.

However, while some spectrum is beneficial, increasing that amount is even better. More effective government involvement is similarly advantageous. We might call this the Oliver Twist Principle.

This is where extending the public-private partnership could be particularly beneficial.

A tech-focused nonprofit called The Free State Foundation recently published a report titled “The Challenges and Benefits of Valuing Federal Spectrum.”

It’s worth noting that I know the foundation’s president, Randolph May, quite well, and he’s an excellent person.

In the report, they point out that there’s a broad consensus that the current use of federal spectrum is less than optimal, largely due to a bureaucratic approach that doesn’t prioritize economic efficiency.

They argue that better utilization of federal spectrum requires improved valuation methods and a commitment to apply those findings to enhance public policy outcomes.

This is where the public-private partnership can evolve into something more dynamic.

Wireless companies can leverage their spectrum expertise to assist the government in effectively valuing and using its share of the spectrum, gradually bringing that 60% down to more manageable numbers, thereby making more spectrum available for private sector use.

This collaboration can occur without cronyism. Companies can analyze and streamline, followed by the traditional auctioning of the newly available spectrum—no favoritism involved.

In return for their assistance, private companies gain the opportunity to purchase more spectrum, and that’s the essence of proper collaboration between businesses and government.

The wireless sector is certainly capable of this approach, and it could serve as a great model for other industries.