I understand that it is necessary for broadcasters, wireless companies, etc for transmission. But there can only be a finite amount of spectrum. Has it all been used up? If there is some remaining then does the FCC hold it back? Do companies get more efficient in using it? If it is such a finite and valuable resource then wouldn’t companies pay a lot for their licenses?
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Three factors on spectrum allocation:
First is you don’t want to have two groups using the same frequency if possible. The Coast Guard needs to talk to one another and if their frequency was also used by cellular phones they might not be able to talk to each other of someone is on the phone. So the spectrum is broke into chunks for each group.
Here is the map as of 2011: https://www.eitdigital.eu/uploads/pics/page1-6300px-United_States_Frequency_Allocations_Chart_2011_-_The_Radio_Spectrum.pdf.jpg
Second is that different frequencies are good for different situations. Higher frequencies can go short distances, line of sight to the radio tower, while lower frequencies can easily cover the country or even the planet but are not good for short distances. Depending on the use case you want to pick a frequency that fits your needs.
Third is the amount of bandwidth needed for your service. Morse code and low data rate digital radios need a very small amount of frequency to transmit information. High quality wide band FM uses about 75 kHz while Morse code can be down around 50Hz. The more data the wider spectrum each user needs. So finding space where a lot of users can coexist may be a need.
The auctions occur when some services stop needing spectrum and other services need more. No more analog TV in the US so that spectrum got repurposed. Cell companies want more coverages for more users with more data so they need to buy more.
As for paying, yes they pay a lot of money. But then there are cases like Amateur Radio where we get the spectrum for free as long as you’re licensed (taking a test).
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