What could happen if more mid-band spectrum is not made available to telecoms? Plenty and all of it bad, according to a new report from Accenture, commissioned by CTIA.
Without more full-powered midband spectrum, wireless networks will not be able to handle increased consumer demand, says the report, Securing the Future of U.S. Wireless Networks: The Looming Spectrum Crisis. The spectrum shortfall could cost the U.S. more than $1.4 trillion of economic growth over the next 10 years. By 2027, networks will be unable to meet nearly a quarter of traffic demand in high-traffic areas during peak hours, growing to nearly three quarters of demand unmet by 2035.
The report highlights an 89 percent increase in wireless data usage since 2021, which is expected to grow three times more by 2029. To keep up with this demand, America needs more 5G-ready spectrum. Without this spectrum, network performance will be degraded, with consumers experiencing slower speeds, more dropped calls, and longer loading times.
“Wireless is the engine of America’s economy and the foundation of our global economic competitiveness,” said CTIA President/CEO Meredith Atwell Baker. “But our growing spectrum deficit presents a growing risk to American economic growth and innovation. America needs a pipeline of full-power, mid-band spectrum auctions to meet demand, grow our economy and secure America’s 5G leadership.”
The study recommends several actions for policymakers to prevent the negative impacts of a spectrum shortage on enterprises, consumers and the U.S. economy. Allocating commercial mid-band spectrum will be key to capture significant economic benefits, attract talent and investment, and maintain its global leadership in wireless technology in the future, the report concludes.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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