North America continues to assert leadership in 5G wireless connectivity, as continued adoption fuels additional demand for improved 5G network services. By the end of Q1 2023, the region boasted an impressive tally of 133 million 5G connections and a staggering 503 million LTE connections. The 5G penetration rate in the North American market is steadily climbing and currently stands at nearly 36 percent, as 14 million new 5G connections came online during the first quarter of 2023.
Additionally, 5G Americas' press release cites an Omdia forecast that 5G will be the dominant mobile technology in North America by 2025, and that there will be 601 million subscriptions in North America by the end of 2027. The press release also includes figures and forecasts for 5G growth for the globe and for other regions.
The 5G Americas press release doesn't cite figures or make forecasts specific to the United States. However, it is imperative that the U.S. maintain its leadership among nations when it comes to 5G services. To securing that leading position through 2027 and beyond, Congress, the NTIA, and the FCC must act to replenish the spectrum pipeline, particularly with mid-band spectrum that is ideal for supporting 5G wireless networks.
In public comments filed in the NTIA national spectrum strategy proceeding, Free State Foundation President Randolph May and I urged the agency to study and reallocate for commercial use at least 1,500 MHz of spectrum. We also recommended that the NTIA prioritize reallocation of the lower 3.1-3.45 GHz band, as we well as the 4 GHz and 7/8 GHz bands.
Importantly, Congress also should promptly restore the FCC's authority to conduct competitive bidding auctions for spectrum licenses. That authority lapsed earlier this year. Apparently, this is the first such lapse since the Commission was first granted spectrum license auction authority in 1993. But on May 24, the House Energy and Commerce Committee passed H.R. 3565 – the Spectrum Auction Reauthorization Act of 2023. If passed into law, H.R. 3565 would restore the Commission's spectrum license auction authority through September, 2026. The bill also would direct the NTIA to conduct feasibility studies for making spectrum in the 4 GHz and 7/8 GHz bands available for "non-Federal use, shared Federal and non-Federal use, or a combination thereof." Hopefully, the bill will soon receive a full vote before the House of Representatives.
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