February 5, 2019
400 MHz of Mid-band Spectrum for 5G will add $274B to America’s Economy, Create 1.3M Jobs .
U.S. trails as other countries plan to make over 4X more licensed mid-band spectrum available by 2020
WASHINGTON – Making 400 MHz of mid-band spectrum available for commercial 5G networks will add $274 billion to the U.S. economy and create 1.3 million new jobs, according to new research from Analysis Group. Mid-band spectrum is critical to 5G but the United States trails other countries in mid-band availability. A 2018 Analysys Mason study shows other countries plan to make over four times more licensed mid-band spectrum available than the United States by 2020.
“Thanks to the investment of America’s wireless industry, and the leadership of the Federal Communications Commission, we lead the world in 5G deployment and the first commercial 5G networks are live in cities across the country,” said Meredith Attwell Baker, CTIA President and CEO. “Making more mid-band spectrum available will secure our long-term wireless leadership and boost our economy. The FCC is already making great progress freeing up mid-band and we’re confident that under the leadership of Chairman Pai, we can quickly close the gap.”
Next-generation 5G networks rely on a mix of high-, mid- and low-band spectrum. Low-band spectrum carries signals over long distances and was the foundation for the first four generations of wireless networks. High-band spectrum travels much shorter distances, but offers the greater capacity required for data-intensive applications. Mid-band spectrum blends the attributes of both, delivering high capacity across larger geographic areas.
To determine the potential economic impact of mid-band spectrum on America’s economy, Analysis Group modeled the investments wireless providers will need to make in order to deploy networks using 400 MHz of mid-band spectrum over a seven year period, the jobs created in the building of those networks, and the resulting economic benefits. Key findings include:
- Wireless providers will invest greater than $150 billion in infrastructure to deliver 5G services over mid-band spectrum
- The wireless industry will create 1.3 million new jobs—on a direct and spillover effect basis—to deploy mid-band infrastructure
- The economic activity resulting from this investment and job creation will add $274 billion to America’s GDP
“Newly allocated mid-band spectrum will complement the spectrum wireless providers are currently using, allowing the blend of coverage and capacity necessary to bring revolutionary 5G services to the U.S.,” said David Sosa, Principal at Analysis Group. “The investment required to build out 5G networks to use this spectrum will generate substantial economic benefits in the form of higher GDP and job creation in communities large and small.”
In 2018, Analysys Mason compiled the mid-band spectrum plans of 13 countries, including the United States.Key findings included that by the end of 2020:
- On average, countries included in the study will make four times more licensed mid-band spectrum available than the United States.
- Japan is planning to make 10 times more licensed mid-band spectrum available than the United States.
- China is planning to make more than seven times more licensed mid-band spectrum available than the United States; the United Kingdom is planning to make nearly five times more licensed mid-band spectrum available.
“Resources available to U.S. operators are improving, but spectrum in the mid-band remains limited compared to other leading 5G markets,” said Janette Stewart, a Principal with Analysys Mason and the lead author of the report. “Mid-band spectrum will be key to wider-area 5G coverage.”
About Analysis Group
Analysis Group is one of the largest international economics consulting firms, with more than 950 professionals across 14 offices in North America, Europe, and Asia. Since 1981, Analysis Group has provided expertise in economics, finance, health care analytics, and strategy to top law firms, Fortune Global 500 companies, and government agencies worldwide. Our experts offer our clients innovative, rigorous, and empirical solutions to challenging economic and financial issues.
About Analysys Mason
Analysys Mason is a leading global adviser on telecoms, media and technology. Analysys Mason works with operators, regulators and end users to design winning strategies that deliver measurable results, make informed decisions based on market intelligence and analytical rigor, develop innovative proposals to gain competitive advantage and implement operational solutions to improve business efficiency. With around 250 staff in 16 offices worldwide, we are respected internationally for our exceptional quality of work, independence and flexibility in responding to client needs. Analysys Mason has been operating for over 30 years. Over the past 3 years Analysys Mason has conducted nearly 50 5G-related projects, in 15 countries, for 38 different clients and as well as authoring the mid-band spectrum report for CTIA.
CTIA® (www.ctia.org) represents the U.S. wireless communications industry and the companies throughout the mobile ecosystem that enable Americans to lead a 21st century connected life. The association’s members include wireless carriers, device manufacturers, suppliers as well as apps and content companies. CTIA vigorously advocates at all levels of government for policies that foster continued wireless innovation and investment. The association also coordinates the industry’s voluntary best practices, hosts educational events that promote the wireless industry and co-produces the industry’s leading wireless tradeshow. CTIA was founded in 1984 and is based in Washington, D.C.