More 5G Spectrum

Spectrum is the name for the invisible airwaves that carry communications signals. Smartphones, FM and AM radio and Wi-Fi networks all use spectrum to transmit data.   A finite, natural resource, there is only so much usable spectrum available. The U.S. government controls the majority of spectrum , and makes it available for government and commercial use through a variety of different means. 

Licensed spectrum refers to the spectrum that forms the core of today’s wireless broadband networks, including next-generation 5G networks. Companies acquire this spectrum through auctions administered by the Federal Communications Commission (FCC). These auctions have raised more than $233 billion for the U.S. Treasury over the past 30 years. Licenses convey exclusive rights to use the spectrum, which allows providers to build more secure, reliable and interference-free communications networks than would be possible under different spectrum allocation models. 

The majority of the spectrum that can be used for communications is reserved for government use. Examples include naval radar systems and weather satellites. The government generally makes remaining spectrum available for commercial use through one of three models: excusive-use licensed spectrum, unlicensed spectrum, and various forms of shared spectrum. 

Wi-Fi is the most well-known example of unlicensed spectrum. While the FCC does not require licenses to use the spectrum, equipment must be certified and meet basic standards. Unlicensed spectrum is considered less secure than alternatives and has few rules preventing interference. This means that information traveling over unlicensed spectrum may be traveling over a less reliable network, with inconsistent quality of service. 

Dynamic spectrum sharing is an experimental structure where a band is shared between government, unlicensed and licensed users operating on the same airwaves, but at different times or places. This type of shared spectrum is guided by rules that give greater access to priority users—usually the federal government—and limit the power of transmissions. As a result, dynamically shared spectrum is often unsuitable for providing coverage of large geographic areas or for supporting applications such as driverless transportation or telehealth, which require consistent levels of service that are free from the risk of preemption and interference. No other country has experimented with dynamic sharing. 

Spectrum licenses sometimes come with different rules that govern their use. Wireless providers refer to spectrum as being ‘full powered’ when the rules allow them to broadcast a signal at a level that permits broad geographic coverage.

CBRS and C-Band spectrum licenses are good examples. These licenses pertain to bands of spectrum with substantially similar properties. CBRS licenses are low-powered. C-Band licensed are full-powered. According to a recent study by Rysavy Research, due to the difference in power levels, it takes seven times the number of CBRS sites to cover the same areas as full-power services found in the C-Band.

Since the early 1990s, the FCC has auctioned rights to use radio spectrum with tremendous success. As FCC Chairwoman Jessica Rosenworcel has put it, “Spectrum auctions have been an indispensable tool for . . . harnessing the promise of beneficial, new technologies. Commission auctions . . . have fueled competition, provided consumers with a vast array of new wireless technologies and services, and ensured that scarce spectrum resources are put to their highest and best use.”

Spectrum auctions ensure the spectrum licenses are allocated to those that have the capacity and commitment to put it to optimal use. In fact, over the past decade, auctions have raised $155 billion in revenues and wireless operators have invested over $265 billion  in infrastructure to put that spectrum to use. Auctions are open to anyone and have attracted a wide range of companies, including 62 different winners in the last FCC auction. Finally, auctions raise money for critical government initiatives and have been used to upgrade military systems and implement next-generation 9-1-1 services.

Wireless auctions are now widely considered “a textbook example of economic policy success,” so much so that spectrum auction designers were awarded the Nobel Prize. Due to its success, the U.S. auction model has been emulated by regulators around the world: over 100 countries have used auctions to allocate wireless spectrum.

Exclusive-use, full-power licensed spectrum is the foundation of our 5G-connected society and the wave of 5G-powered innovation that is transforming the way we live, work, create and play.

Today, networks built on a foundation of full-power, licensed spectrum contribute $825 billion to America’s economy each year, and support 4.5 million jobs. Based on economic impact, the wireless industry would be America’s seventh largest state and a member of the G20.

5G networks are built on a platform of exclusive-use, full-power licensed spectrum and will have an even greater impact. According to Boston Consulting Group, these networks will add $1.5 trillion to America’s economy and another 4.5 million jobs.

We are already beginning to see this impact today. 5G home broadband is bringing real competition to cable and is America’s fastest growing home broadband service. In fact, 95% of new broadband subscribers in 2022 chose 5G home broadband.

Entrepreneurs across the country are creating 5G’s first wave of innovative products and services, thanks to the security, reliability and capabilities of 5G networks and licensed spectrum. In verticals such as agriculture, healthcare, manufacturing, public safety, transportation and education, the benefits of 5G’s tremendous speeds, high capacity and low latency are changing the status quo.

Examples include Halo.Car, an on-demand driverless car company; KaiXR, an AR/VR education company that is expanding learning opportunities; and Trellis, an agriculture technology company using 5G to help farms operate more sustainably.

New 5G home broadband offerings, enabled by full-power, licensed spectrum, are unleashing the wireless industry’s competitive spirit in a whole new market, bringing real competition to cable and helping provide more options for high-speed home internet in unserved and underserved communities.

5G home broadband is a cost-effective and easy-to-deploy solution. It doesn’t require last-mile infrastructure to deliver a strong signal, and consumers can set the service up themselves in minutes. In 2022, it was the connection of choice for greater than 90% of new broadband subscribers, and today, 25M households have access to 100 Mbps FWA service–with estimates suggesting that number will grow by 8x by 2025. 5G home broadband’s ability to serve more Americans depends on a pipeline of more licensed, full-power, spectrum.

Full-power, licensed spectrum is the foundation of wireless networks that serve as the on-ramp to the internet for millions of Americans, partly thanks to their strong track record of affordability. In fact, over the past year, 5G home broadband, built on a platform of licensed spectrum, became the connection of choice for greater than 90% of new broadband subscribers – underscoring the important role licensed spectrum plays in closing the digital divide and reaching more Americans.

That’s because 5G home broadband is a cost-effective and easy-to-deploy solution. It doesn’t require as much infrastructure to deliver high-quality broadband compared to wired options, and consumers can set the service up themselves in minutes. Today, 25M households have access to 100 Mbps FWA service–with estimates suggesting that number will grow by 8x by 2025.

And that is just the latest example of how licensed spectrum helps address the digital divide and ensure digital equity. Today, unlimited plans are over 40% cheaper and connections are 117 times faster than in 2010. This helps make wireless the network of choice for many Americans. Today, wireless is the only broadband connection for over a quarter of low-income adults, 25% of Latinos and 17% of African Americans. And over 50% of Affordable Connectivity Program participants are using the subsidy for mobile services.

5G wireless networks built on licensed spectrum provide the most secure wireless communications available—more secure than any previous generation or type of wireless. That’s because 5G was designed with security in mind from the ground up and includes new protections. Exclusive-use, licensed spectrum enables providers to deliver consistent, reliable connections, with limited risk of interference and free from the preemption common in other spectrum allocations. 5G networks also give operators greater control and visibility into problems on the network—if a security problem arises, they have the ability to identify it and take action. Other spectrum allocation approaches are less reliable. For instance, unlicensed spectrum may be subject to greater interference, while rights to use dynamic spectrum sharing are contingent and pre-emptible, making them unsuitable for use cases that require consistency.

Since 5G launched in 2018, three nationwide networks—and dozens more regional provider networks across the U.S.—already cover 325 million Americans. And 5G is being built out faster than 4G. The first 5G network achieved nationwide coverage two times as fast as 4G, and all three national providers built nationwide networks 42% faster than 4G. This rapid deployment is thanks to significant industry investment. Since 2018, the wireless industry has spent $160B to expand and upgrade their networks, including a record $39 billion in 2022 alone.

America is also a world leader in 5G infrastructure investment, with $309B invested since 2012.

It is important that the DOD and other agencies have the spectrum resources they need for mission-critical services, but often these missions rely on dated technology that could be upgraded to be more efficient with precious spectrum resources. Our system for reallocating spectrum has proven that spectrum repurposing can be managed in a way that strengthens agencies and helps them advance their missions by providing the impetus and the funding for more effective systems that rely on less spectrum. To cite one example, in 2015, the FCC auctioned the AWS-3 band—spectrum on which the U.S. Navy and other agencies had previously relied. The auction generated $44.9 billion in winning bids, and between the AWS-1 and AWS-3 auctions, $7.1 billion was allocated to federal users like the Navy to upgrade legacy ship radios to new technologies and to other agencies to upgrade their communications systems.

Clearing additional mid-band spectrum can have similar results, helping the DOD upgrade systems that, in some cases, are several decades old, providing confidence that we can find win-win opportunities that improve agencies’ ability to achieve their missions, while also strengthening our economic security by fueling 5G-enabled innovation.

America does not have enough full-power, licensed spectrum to meet exploding demand for wireless broadband. That has long-term consequences for the reliability of these networks and for America’s global economic and innovation leadership.

Over the past decade, demand for mobile data grew at 30 times the rate of available spectrum. The pace of mobile data growth is rapidly increasing—last year saw the largest annual increase ever, and Ericsson predicts consumers will use an additional 3x more data by 2027. If we do not make additional full-power, licensed spectrum available to meet this demand, we risk overloading the wireless networks we all rely on every day to live, work and learn.

While some have suggested using shared or unlicensed spectrum to meet this demand, only full-power licensed spectrum can support the level of reliability and security we need in today’s communications networks.

This level of reliability is also critical for leading the industries and innovations of the future, such as smart cities and driverless transportation. If we do not make sufficient full-power, licensed spectrum available, those innovations will be developed and exported by other countries, principally China. That has long-term implications for America’s global influence, economic leadership and national security.

Other countries recognize the challenge posed by growing demand and the opportunity presented by a new wave of 5G-driven innovation. These countries, including China, Japan, South Korea, the UK and France, are moving quickly to fuel their 5G networks with more full-power, licensed spectrum. Today they have 44% more 5G spectrum than the United States, and they plan to release even more in the coming years.

In short: America needs more licensed spectrum to keep up with accelerating demand and to maintain our global economic and innovation leadership.

Exclusive-use, licensed spectrum is the anchor of the wireless ecosystem, and it is critical to building highly reliable and secure wireless networks. Only exclusive-use, licensed spectrum provides operators with the ability to limit interference to deliver the quality of service expected from enterprise and industrial use cases built around the need for more reliability and security. To power key communications systems for emergency response, public safety also relies on networks leveraging exclusive-use spectrum because of its reliability and resiliency.

Other spectrum allocation models, such as unlicensed spectrum or complex, dynamic spectrum sharing systems where spectrum use is limited or can be preempted, cause real complications for both operators and consumers. The promise of connected healthcare, smart transportation and other advancements innovators are working toward in the U.S. require a spectrum policy designed to meet those needs reliably and securely.

Spectrum found in the Citizens Broadband Radio Service (or “CBRS”) band is shared between a mix of incumbent users, licensees and general unlicensed users. The CBRS framework is an unproven experiment in spectrum sharing and, as such, is not a reliable foundation for building future networks. In fact, a recent report from Recon Analytics showed that CBRS spectrum is underutilized, the market for CBRS service remains modest and the technology that makes sharing possible has proven to be overly complicated. Due to its low power levels, CBRS is unable to provide broad geographic coverage. Today, less than 10% of CBRS spectrum is found in use compared to over 90% of licensed, full-power C-band spectrum.

Another recent study, from Rysavy Research, showed that it takes seven times the number of CBRS sites to cover the same area as full-power services found in the nearby C-Band. Finally, due to the complexity of its sharing structure, and the fact that access rights can be preempted with little notice, CBRS spectrum does not provide high reliability or quality of service for enterprise applications. Mindful of these issues, other countries have opted not to adopt this type of experimental sharing regime, preferring proven exclusive-use, full-power, licensed spectrum. Policymakers must give CBRS more time before it can evaluate its success, let alone extend this experiment to new bands.

Wireless providers secure access to licensed spectrum by participating in spectrum auctions administered by the FCC. Today, however, the United States does not have an identified pipeline of future full-power, licensed spectrum auctions. In addition, Congress allowed FCC auction authority to expire for the first time in the 30-year history of spectrum auctions. To fix this problem, Congress must immediately reauthorize the FCC to conduct auctions and identify specific bands for auction.

According to a recent Accenture report, the bands with the greatest promise for addressing this challenge and ensuring 5G reaches its full potential are the lower 3 GHz, 4 GHz and 7/8 GHz spectrum bands.

The future of U.S. economic and national security depends on leading the industries and innovations of the future, including smart manufacturing, precision agriculture, robotics, virtual/augmented reality, telemedicine and more. These innovations rely on robust, secure 5G networks, and those networks rely on a pipeline of full-power, licensed spectrum. If we do not make more full-power, licensed spectrum available, we risk our nation’s global economic and innovation leadership.

We also need more full-power, licensed spectrum to ensure that all Americans have access to highly reliable and secure wireless networks. By 2027, wireless networks will need to accommodate three times more data traffic compared to today.

According to Accenture, failure to allocate sufficient spectrum for licensed, commercial use could lead to an “inability to deliver on the full promise of 5G.”

A new study from the Brattle Group finds that even optimistic increases in efficiency and additional infrastructure deployment will not be enough to meet projected demand—additional spectrum is the only realistic answer. The U.S. needs at least another 400 megahertz of full-power, licensed spectrum in five years and nearly 1,500 megahertz by 2032 to keep up with long-running trends in mobile data growth.

According to The Brattle Group, failure to provide more licensed spectrum to meet this demand “could lead to poor customer experience, network overload, and otherwise risk forfeiting U.S. leadership in 5G and beyond.”

America needs a balanced spectrum policy with sufficient spectrum for both licensed and unlicensed users.

Over the past decade, demand for mobile data grew at 30 times the rate of available spectrum. The pace of mobile data growth is rapidly increasing—last year saw the largest annual increase ever, and Ericsson predicts consumers will use an additional 3x more data by 2027.

And mobile has access to far less spectrum than Wi-Fi. The unlicensed community has 2x more spectrum from 1-8 GHz, 4x more from 3-8 GHz, and 10x more if we look at the full range of wireless frequencies. They recently received access to the entire 6 GHz band—1200 megahertz of spectrum. Meanwhile, wireless providers are facing a growing spectrum deficit. A new study from the Brattle Group finds that even optimistic increases in efficiency and additional infrastructure deployment will not be enough to meet projected demand—additional spectrum is the only realistic answer. The U.S. needs at least another 400 megahertz of full-power, licensed spectrum in five years and nearly 1,500 megahertz by 2032 to keep up with long-running trends in mobile data growth.

The wireless industry sorts the spectrum that can be used in communications networks into one of three categories: low-, mid- and high-band spectrum. Today’s 5G networks work best with mid-band spectrum. Mid-band spectrum provides the ability to cover wide areas with high-capacity wireless broadband.

According to a recent Accenture report, the mid-band spectrum with the greatest promise for addressing this challenge and ensuring 5G reaches its full potential are the lower 3 GHz, 4 GHz and 7/8 GHz spectrum bands.

A recent report from Analysys Mason found that the United States trails other leading countries in making licensed, mid-band spectrum available for 5G. Countries such as China, South Korea, Japan, the UK and France have an average of 44% more mid-band spectrum than the U.S. today. By 2027, the U.S. deficit will actually grow 115% absent swift government action.

According to Accenture analysis, America’s existing mid-band spectrum allocations are unbalanced, with unlicensed users having over 300% more mid-band and government users over 600% more mid-band spectrum than what is available to the wireless industry. Accenture finds this imbalance could lead to an “inability to deliver on the full promise of 5G.”

According to Accenture, the bands with the greatest promise for addressing this challenge and ensuring 5G reaches its full potential are the lower 3 GHz, 4 GHz and 7/8 GHz spectrum bands.

America led the world in 4G—and thanks to that leadership, the U.S. enjoyed more than a decade of global innovation and economic leadership. Next-generation 5G networks, built on a platform of full-power, licensed spectrum, will be a force multiplier for productivity gains throughout the economy, supporting the development of the innovations and industries of the future.

From advanced manufacturing and precision robotics, to mobile augmented reality, dense smart city deployments, driverless transportation and more, it is a strategic imperative that America lead the world in pioneering these innovations.

But leadership in these industries relies on allocating sufficient amounts of licensed spectrum to fuel the 5G platform on which they rely. Recognizing this, China is moving quickly to free up more spectrum than the United States, up to 4x more, according to some estimates. If China is able to leapfrog the United States in innovation leadership, it will be in a strong position to exert greater influence across broad sectors of the global economy.

According to a new report from the Center for Strategic and International Studies, allowing China to lead in 5G, and the innovations of tomorrow, threatens America’s national security, economic competitiveness, innovation leadership and the free flow of information and discourse.