BCG Identifies Five Key Recommendations to Help US Lead in 5G-Driven Innovation

More licensed spectrum needed to meet exploding demand for 5G and support transformative new use cases

WASHINGTON, April 17, 2023 /PRNewswire/ -- A new report by Boston Consulting Group, commissioned by CTIA, evaluates America's progress on five key factors needed to unlock 5G-driven innovations across the 5G economy. The study, "Accelerating the 5G Economy," finds that while the United States has done well with deployments in the four years since the introduction of 5G, more needs to be done to secure the future benefits of 5G and new, transformative use case across industries. In particular, BCG identifies the need for additional full-power, licensed mid-band spectrum for wireless use.

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"Thanks to record investments by the wireless industry, America is leading the 5G economy," said CTIA President and CEO Meredith Attwell Baker. "BCG's findings are a critical reminder that we need more 5G-ready spectrum to meet increasing data demand and enable the speeds and capacity necessary to fuel future innovation here in the United States."

The 5G economy is at an inflection point, turning from deployment to development of the applications that can leverage 5G capabilities, but today, the United States has no spectrum pipeline and Congress allowed the FCC's auction authority to lapse for the first time in 30 years. According to BCG, more full-power, licensed mid-band spectrum is key for the United States to continue to lead and grow the 5G Economy or risk ceding leadership to other countries.

"Additional spectrum, particularly licensed mid-band spectrum that provides the performance necessary to support large-scale wireless networks, is needed for the United States to continue to lead and grow the 5G economy," said Val Elbert, Managing Director and Partner, Boston Consulting Group.

The stakes are high: BCG expects the 5G economy to add $1.5T to America's economy, and 4.5M jobs by 2030, but more must be done to realize this potential. Two of BCG's five recommendations are spectrum focused, underscoring the outsized role spectrum policy will have on future 5G development. BCG's five recommendations to promote 5G in the U.S. are:

1. Increase the availability of full-power, licensed mid-band spectrum for wireless use.
2. Create a future pipeline for licensed spectrum auctions.
3. Provide further incentives for 5G innovation.
4. Develop a 5G partnership function in governments.
5. Promote and support the development of large-scale IoT deployments.

This report builds on BCG's 2020 study, "Building the U.S. Economy," which first identified the five critical success factors for America's 5G Economy.

SOURCE CTIA