The economic impact of each 100 MHz increment in the frequency band in mobile communications: prepared for the U.S. Wireless Communications Show (CTIA)

Prepared for CTIA22 January 2025 Project TeamDr. Hector LopezJulien Martin Contents Executive Summary............................................................................................................................ i 1.The importance of the wireless industry to the American economy ........................... 12.The unique role of licensed mid-band spectrum ........................................................... 53.The economic impact of allocating mid-band spectrum to mobile............................. 83.1.Continued improvements to mobile service to millions of Americans........................................93.2.Improving broadband with FWA ............................................................................................................. 123.3.Supporting industries that rely on mobile connectivity ................................................................. 17 4.Allocating additional spectrum to Mobile vs Wi-Fi ..................................................... 28 5.Conclusion........................................................................................................................ 32 Executive Summary The wireless industry has become a cornerstone of the American economy, influencing nearly everyaspect of daily life and business operations. As technology continues to advance, the demand forwireless communication continues to surge, with Americans consuming an astounding 100 billion The industry's significant contributions to economic output and job creation further highlight itsimportance. Wireless enables vast swathes of economic activity, both directly through investments incommunication infrastructure and indirectly by enabling new services and improving worker Approximately 1.1 GHz of licensed spectrum below 6 GHz has supported this economic growth andemployment. However, the wireless industry is rapidly approaching a spectrum deficit that will resultin network congestion, thereby hindering the continued growth fueled by the wireless industry. Additional wireless spectrum is fundamental to so many aspects of the U.S. economy. In particular, thisstudy focuses on the economic activity and consumer benefits generated by: •continued improvements to mobile service to millions of Americans;•improved fixed broadband coverage and penetration via fixed wireless access (FWA); All this economic activity and wireless industry investment enabled by additional licensed spectrumwill contribute significantly to the American economy. We estimate that each additional 100 MHz ofmid-band spectrum to mobile will generate $264 billion of GDP, about 1.5 million new jobs, and about$388 billion in consumer surplus. The impact of 400 MHz of mid-band spectrum would be $1.1 trillionof GDP, 6.18 million new jobs, and about $1.5 trillion in consumer surplus. Beneficial effects would 1.The importance of the wireless industry to the American The wireless industry is an integral part of the U.S. economy, with wireless communications deeplyintegrated into how we live and work. Americans consumed 100 billion GBs of data last year, and datatraffic continues to grow.1From enabling economic transactions to connecting families and defending The core wireless industry, which includes mobile and wholesale network operators, contributessignificantly to the American economy.Figure 1shows the consistent investments wireless providersmake in the U.S.’s communications infrastructure. Since the launch of the first commercial cellularnetworks, wireless operators have invested over $700 billion in capital expenditures to build anddeploy networks throughout the nation.2In 2023 alone, the wireless industry invested $30 billion; and Beyond its direct economic contribution to output and GDP, the wireless industry also generatessignificant indirect benefits through its infrastructure deployment and wider supply chain, as itpurchases goods and services like network equipment and software from other industries. And as thewireless industry’s workers spend their incomes, they generate additional induced economic effects,multiplying the industry’s impact across the economy. Once indirect and induced effects are taken into The wireless industry’s impact across the economy extends further still. As a general-purposetechnology, wireless communication networks fuel the broader economy by enabling innovation andeconomic activity in other, downstream industries that rely and build upon the services they provide.For example, a recent study by Accenture estimates that 5G networks will contribute an additional$159 billion to the American manufacturing industry’s GDP over a 5-year period.6Compass Lexecon, Through network expansion and new services, most notably mobile Fixed Wireless Access (FWA), thewireless industry also expands broadband connectivity in under-served areas, creates new competition to wired broadband, and promotes inclusive access to the economy. FWA has been pivotal in closingthe d