The Econ One report estimates the competitive effects of FWA entry into broadband markets. The estimates are based on surveys of consumer responses to hypothetical scenarios in which FWA services are made available at different price levels and in local markets with differing choices among incumbent providers of cable modem and/or fiber broadband services.
According to Econ One's report: "In all scenarios—including at current prices or alternative discounted prices, and in markets with only cable or those with a mix of cable and fiber offerings—the introduction of FWA packages yields price reductions and significant consumer welfare gains." That is, the report found that FWA market entry would prompt many subscribers to switch from incumbent services to competitively priced FWA services and also lead to price reductions for subscribers to cable broadband services. For the details, check out Econ One's report.
Notably, Econ One's report "assumes sufficient capacity to support all potential subscribers with high-speed FWA service." That assumption is key because mid-band spectrum is a necessary input for supporting FWA services for large numbers of subscribers. But as Free State Foundation scholars have pointed out in April 2023 public comments to the NTIA for its National Spectrum Strategy proceeding, in Perspectives from FSF Scholars papers, and in blog posts, there is a shortfall of mid-band spectrum available for commercial licensing on an exclusive basis. The Econ One report is on solid ground in concluding that "[t]he best and fastest way to increase home broadband competition, which will bring significant consumer savings, is getting more full-power, licensed, mid-band spectrum into the hands of FWA providers."
FSF scholars have supported prior FCC allocations of spectrum for use on an unlicensed basis, including the Commission's 5.9 GHz Order. Congress and federal agencies also ought to be open to pursuing new opportunities to dedicated other spectrum resources to unlicensed uses. But it is now imperative that Congress and federal agencies prioritize the repurposing of mid-band spectrum for exclusive licensed use. Congress needs to renew the FCC's authority to conduct competitive bidding auctions for spectrum licenses and get additional mid-band spectrum into use to support FWA.
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