More Licensed, Mid-band Spectrum Will Supercharge Economic Growth

WASHINGTON - U.S. wireless operators are poised to turn new mid-band spectrum into rapid economic growth, according to a new report from economic consulting firm NERA. The report, commissioned by CTIA, finds that each additional 100 megahertz of mid-band spectrum licensed for 5G will add over $260 billion to GDP, create 1.5 million new jobs, generate almost $390 billion in consumer surplus, and connect 275k households to high-speed broadband for the first time through 5G home services.

As Congress considers how it develops a plan for new auctions, policymakers should recognize the significant benefits of a pipeline of new commercial spectrum for wireless networks. As the NERA report shows, investments in licensed spectrum are a stimulus to the economy, beneficial to consumers and supportive of American innovation. In addition, spectrum auctions provide sizeable revenue for the government, having already raised over $233 billion for the Treasury.

"Today's report from NERA is a powerful reminder of what's at stake in the spectrum debate," said Meredith Attwell Baker, CTIA President and CEO. "Releasing more mid-band spectrum is a critical step to creating more jobs, growing our economy and connecting all Americans."

Mid-band spectrum is essential for supporting the advanced capabilities of 5G networks. With wireless providers' proven track record of putting spectrum to work quickly, auctioning more mid-band for licensed use will:

• Enhance coverage and capacity for consumers across the country, including through increased availability of 5G home or fixed wireless access services, which are bringing competition and choice in the home broadband market.

• Support jobs and economic contributions from companies throughout the wireless ecosystem, like equipment manufacturers, tower climbers, and more.

• Help advance technologies that rely on 5G, like artificial intelligence, augmented or virtual reality, and connected cars, as well as the industries that deploy these tools.

"The wireless industry serves as a vital pillar of the American economy, significantly contributing to innovation, economic growth, and job creation," said Hector Lopez, Ph.D., director and economic expert at NERA. "Its extensive investments in infrastructure and technology not only enhance communication capabilities but also support a wide range of industries that rely on wireless connectivity for their operations."

More commercial spectrum is sorely needed if networks are to keep up with exponential growth of data traffic. Traffic on wireless networks eclipsed 1 trillion megabytes in 2023-double the amount of traffic from 2021. Anticipated demand will require over 400 megahertz of spectrum by 2027, growing to nearly 1400 megahertz by 2032.