By Claus Hetting, WiFi NOW CEO & Chairman
A new study authored by Telecom Advisory Services and commissioned by US-based spectrum advocacy group WiFiForward now pegs the 2023 economic value of Wi-Fi in the United States alone to US$1.3 trillion growing to a staggering US$2.4 trillion by 2027. The study also estimates the value of the FCC’s 6 GHz decision of April 2020 and argues for the release of more unlicensed spectrum in parts of the 7 GHz band.
Unlicensed bands are literally the gifts that keep giving in terms of economic value and now a new study released by WiFiForward offers an updated estimate of the current and future values of Wi-Fi in the US alone. The study estimates not the market value (approximately US$300 billion) but the value of consumer benefits, producer surplus, and contribution to GDP.
And those values – according to Dr Raul Katz and his team of authors – add up to trillions of dollars. The study estimates that the value of Wi-Fi 7 alone (US only) will rise to about US$836M by 2027 and that Wi-Fi 6E and Wi-Fi 7 together by that time will represent more than half of the US$2.4 trillion total value of Wi-Fi. Sources of value (which are carefully expounded in the report) include free Wi-Fi, residential consumers, enterprise Wi-Fi, ISPs, and participants in the Wi-Fi ecosystem.
The report estimates that the FCC’s decision to release the 6 GHz band to Wi-Fi in April of 2020 has generated an incremental economic value of US$870B in 2023 and 2024. This number is projected to increase to US$1.2 trillion by 2027, the report says.
With numbers in the trillions it is also not difficult to argue in favour of allocating more Wi-Fi spectrum – this time in the 7 GHz band – which is really the main message to spectrum policy makers in the report. To say the calculations are complex is an understatement but digging into at least a few sections of the 150-page opus is definitely worth it and even kind of fascinating.
The report suggest immediately opening the 7125-7250 MHz band to Wi-Fi under the FCC’s current 6 GHz technical rules. This would mean that one additional and otherwise ‘stranded’ 320 MHz channel would become available. The cumulative economic value of the additional 125 MHz of spectrum is estimated at close to US$28B at end of 2027, the report says.
More than this the authors also recommend opening the 7250 – 7625 MHz band to Wi-Fi as this would make room for a fifth 320 MHz channel and generate nearly US$52B of economic value between 2025 and 2027. The main argument here is to allocate enough Wi-Fi spectrum to support speeds of up to 10 Gbps for Wi-Fi 7 and future Wi-Fi 8 thus matching the speeds of fibre-based fixed network services. Finally the report suggest launching a study of the remaining part of 7 GHz band (above 7625 MHz), which will be more challenging to free up due to the current mix of incumbent users.
Overall the new study presents a tremendously detailed and carefully structured calculation of Wi-Fi value and plenty of excellent argumentation for continuing the Wi-Fi journey into the 7 GHz band. Let the regulatory discussions begin! Download the study here.
/Claus.
