5G Spectrum Is 4.5x More Valuable To Economy Than ‘Free’ Wi-Fi

Despite the pandemic, the Federal Communications Commission advanced major spectrum policy and auctions in 2020. Yet despite continued successes of commercial spectrum auctions in which market actors pay for the right to use the public’s resources, policymakers persist in giving away valuable resources to Big Tech. 5G licensed mid-band spectrum is projected to deliver $191.8 billion to the US economy over 7 years. Wi-Fi revenues over unlicensed spectrum over 6 years are projected to bring $153.76 billion. When adjusted on an annual per MHz basis, 5G spectrum is $0.59 and Wi-Fi, $0.13. Over the period, 5G spectrum provides 4.5 times more economic value per MHz than Wi-Fi. Comparing the proceedings in these economic terms, auctions for spectrum rights are superior to unlicensed designations. This suggests that the FCC was shortsighted to reject one proposal to halve the 6 GHz into unlicensed and licensed portions, the latter of which was estimated to generate at least $20 billion in proceeds. If spectrum is critical to the Wi-Fi industry, it follows that the Wi-Fi industry should pay for it. Policymakers are intent on regulating Big Tech; the first step should be to stop giving them free spectrum.

[Roslyn Layton is Executive Vice President of Strand Consult and Co-Founder of ChinaTechThreat.]