Tuesday, February 09, 2021

Report Projects Astonishing Rise in Wi-Fi's Economic Value

On February 3, the Wi-Fi Alliance® released a study titled "Global Economic Value of Wi-Fi® 2021-2025." The report estimates that the current worldwide value of Wi-Fi is $3.3 trillion, and that it will reach $4.9 trillion by 2025. 

As the report observes: "The United States remains one of the countries with the widest Wi-Fi adoption and use." It credits the high numbers of paid Wi-Fi access points and public Wi-Fi sites. According to the report, "[t]he total economic value of Wi-Fi in 2021 is $995 billion. With the new allocation of 1200 MHz in the 6 GHz band, as well as market penetration of Wi-Fi 6, the value of Wi-Fi will grow to $1.58 trillion by 2025."

Free State Foundation scholars have supported FCC initiatives in its 6 GHz and 5.9 GHz to put spectrum into unlicensed use, including for technologies such as unlicensed Wi-Fi. As Free State Foundation Senior Fellow Andrew Long explained in his Perspectives from FSF Scholars paper, "Wi-Fi 6G Can Modernize Unlicensed Wireless," the new Wi-Fi 6E standard will usher in a new era of unlicensed wireless growth and innovation. 

 

It will be exciting to see these spectrum allocations to unlicensed use and the widespread adoption of Wi-Fi 6E devices pay dividends in terms of faster, more capacious, and extra-reliable Wi-Fi connections as well as new uses. Yet at the same time, the Wi-Fi Alliance report should lead us to recognize the need to build up the U.S. stock of mid-band spectrum for licensed commercial use. As the report points out, the FCC has dedicated significant mid-band spectrum resources to unlicensed Wi-Fi use. Analysys Mason's "Comparison of Total Mobile Spectrum in Different Markets" report from June 2020 identified the U.S. as the nation with by far the highest amount of unlicensed mid-band spectrum assigned to unlicensed use – at 1,860 MHz. Free State Foundation scholars will have more to say soon on repurposing additional mid-band spectrum for licensed commercial use.