Toll Industry Report Warns of Significant Economic Harm From 900 MHz Spectrum Realignment

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Tanya Sheres
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FOR IMMEDIATE RELEASE
April 29, 2025

WASHINGTON, D.C. - The International Bridge, Tunnel and Turnpike Association (IBTTA) released today an Economic Study of the impacts of the proposed realignment of radio frequency spectrum used by U.S. electronic tolling and many other consumer applications. IBTTA commissioned the report with a tolling coalition of organizations that oppose the FCC petition by NextNav, Inc. to reallocate the lower 900 MHz band to provide a new high-powered position-navigation-and-timing (PNT) system to address vulnerabilities to U.S. global positioning systems (GPS). The detailed economic report shows that the proposed spectrum reorganization would impose tens of billions of dollars in costs for American toll road operators, overshadowing limited public benefit the proposal would offer.

The 902-928 MHz band currently supports tolling and transportation systems nationwide, along with a vast array of other operations, including military operations, industrial, business, and consumer applications. NextNav's proposal would reallocate the band, reducing the spectrum available for electronic tolling by more than 20 percent, while dedicating 15 MHz in an exclusive nationwide license to a single commercial entity to introduce a new PNT system and 5G broadband. Less than 5 percent of the spectrum would be used for the PNT system with the remaining spectrum used for highly profitable 5G services.

"The public interest demands careful consideration of all the costs and benefits of any changes to the lower 900 MHz band," said Mark Muriello, Vice President of Policy and Government Affairs at IBTTA. "This analysis makes clear that the costs of the NextNav proposal significantly overshadow the benefits of the change."

Key findings from IBTTA's Toll Coalition economic analysis include:

• $27-33 billion - Estimated national cost to retune or replace toll system roadside equipment and in-vehicle transponders and introduce interference mitigation measures.
• $6.8 billion - Tolling industry's projected burden from degraded system performance, related revenue loss, and increased transaction and collection costs during the initial five-year transition period.
• No rule change needed - Current FCC rules already allow NextNav's TerraPoiNT network to operate as a GPS backup.
• Multiple alternatives exist - Competing PNT solutions are available without the high costs and damaging disruption of spectrum reallocation.

"IBTTA and the toll industry support the need to address the risks and vulnerabilities of GPS as a single point of failure for the U.S. economy and national security," said James Hofmann, IBTTA President and Executive Director of the North Texas Tollway Authority. "With many alternatives available, there are solutions that are better and less impactful to American motorists and consumers than NextNav's proposal."

IBTTA represents the nation's toll facility operators responsible for hundreds of tolled roads, bridges and tunnels that support nearly 10 billion trips each year and generate more than $23 billion in revenue annually. These facilities provide vital connections and funding for the modern infrastructure the U.S. economy - and its people - rely on every day.

IBTTA encourages the Federal Communications Commission to fully weigh the costs to incumbent users and public services before considering any rulemaking. To read IBTTA's full FCC filing and economic report, visit www.ibtta.org/protectsmartspectrum.

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About IBTTA

The International Bridge, Tunnel and Turnpike Association (IBTTA) is the worldwide association for the owners and operators of toll facilities and the businesses that serve them. Founded in 1932, IBTTA has members in more than 20 countries on six continents. Through advocacy, thought leadership, and education, members are implementing state-of-the-art, innovative user-based transportation financing solutions to address the critical infrastructure challenges of the 21st century. For more information, visit www.ibtta.org.