House Passes Bill for 6G Task Force and Report

On April 28, the U.S. House of Representatives passed, by a unanimous voice vote, H.R. 2449 – the "Future Uses of Technology Upholding Reliable and Enhanced Networks Act" or the "Future Networks Act." Sponsored by Rep. Doris Matsui and co-sponsored by Reps. Rick Allen and Tim Walberg, the Future Networks Act, if it were to be passed by Congress and signed into law by President Donald Trump, would direct the FCC's Chairman to appoint a "6G Task Force" that would prepare and send to Congress a report on developing standards, uses, and related issues involving future 6G wireless networks. 

Under the bill, the members of the 6G Task Force would include representatives of the communications industry, public interest organizations or academic institutions, and representatives of federal, state, local, and tribal governments. The Future Networks Act requires that, within 180 days of the 6G Task Force being established, the group prepare a draft report on 6G wireless technology. The draft report would be published on the FCC's website and in the Federal Register for public comment Following the public comment period, and within 1 year of the 6G Task Force being established, the group would publish their final report and submit it to House and Senate Committees. 

The development of 6G technologies, standards, and spectrum policies no doubt will be a multi-faceted and complex undertaking. A future 6G report by the type of task force proposed in the Future Networks Act could serve as a valuable storehouse of knowledge for Congress, the FCC, and the Executive Branch and help pave the way for a successful eventual launch of 6G wireless networks. Now that the Future Networks Act has passed the House, the Senate should give the bill due consideration. 

 

In an April 2023 blog post, Free State Foundation President Randolph May identified the restoration of the FCC's authority to conduct competitive bidding spectrum license auctions as essential for future 6G network deployment. However, in the near term, there are many opportunities for expanding 5G networks by repurposing spectrum from government use to private use. Seizing those opportunities depends not only on a replenished spectrum pipeline but revival of the Commission's auction authority. The 119th Congress should restore the FCC’s authority on spectrum license auctions and encourage timely replenishment of the spectrum pipeline. 

Wi-Fi 7 Innovation Is Now Deploying to Consumers

On November 25, Charter Communications announced that it has started deploying Wi-Fi 7 routers. Charter is apparently the first major broadband Internet service provider to launch an exclusively designed Wi-Fi 7 technology system for both its residential and business subscribers. In September, AT&T announced that it plans to introduce a new Wi-Fi 7-capable gateway before the end of the year. Also, it is reported that there are dozens of Wi-Fi 7-certified non-exclusive devices in the market as of 2024.

Wi-Fi 7 is an innovative upgrade over prior generations of Wi-Fi technology. It is reported that Wi-Fi 7 enables wider channels for increased bandwidth, improved reliability, and better speeds. In 2025, look for the deployment of Wi-Fi 7 routers, TVs, cell phones, and other Wi-Fi 7-compatible devices to improve network performance and capabilities for American broadband subscribers – starting with Charter's subscribers. 

 

Wi-Fi 7 operates in the 2.4 GHz, 5 GHz, and 6 GHz bands. Fortunately, there is a large amount of spectrum dedicated to unlicensed wireless usage, such as Wi-Fi. The FCC's 6 GHz Order (2020) cleared 1200 MHZ of spectrum for unlicensed use, which quadrupled the total amount of spectrum available for unlicensed devices, most notably Wi-Fi routers and Internet of Things (IoT) devices that use Wi-Fi. 

Report IDs Key Stats on Wireless Infrastructure, But Regulatory Threat Looms

On April 16, the Wireless Industry Association (WIA) released its report, "Wireless Infrastructure By The Numbers: 2023 Key Industry Statistics." As the title indicates, WIA's report provides a high-level look at the overall number of cell towers, macro sites, and small cell facilities that mobile service providers use to offer mobile broadband Internet access services. According to WIA's report, as of 2023, there were 153,400 cellular towers in operation in the U.S., in addition to nearly 245,000 macrocell sites and 202,100 outdoor small cells in operation. The report found that there also were nearly 776,000 indoor small cell nodes in use as of last year. These figures surely have grown since 2023.  

Moreover, WIA's report found that "[t]he U.S. cellular industry spent $11.6 billion building additional capacity and coverage into the nation’s wireless networks in 2023." Another interesting observation in the report is that "[m]ore towers and cell sites are being deployed but the amount spent building networks is flat" because "[a]s wireless network technologies mature and evolve, network equipment becomes more efficient and cost effective." Also, "[t]he amount spent on maintaining and operating the cellular networks increased but build spending dropped" due to larger networks increasing the necessary maintenance costs.

 

The deployment and operation of 4G LTE and 5G wireless networks depends on private market investment remaining strong. Subjecting mobile broadband networks to public utility regulation – as the FCC proposes in its Draft Order to be considered for a vote at the agency’s April 25 meeting – would undermine the ability of wireless infrastructure owners and operators to use their property and generate returns. This would reduce incentives to build and upgrade such infrastructure. The 2018 Restoring Internet Freedom Order found that the imposition of public utility regulation under the now-repealed 2015 Title II Order inhibited investment: 

The Commission has long recognized that regulatory burdens and uncertainty, such as those inherent in Title II, can deter investment by regulated entities and, until the Title II Order, its regulatory framework for cable, wireline, and wireless broadband Internet access services reflected that reality. This concern is well-documented in the economics literature on regulatory theory, and the record also supports the theory that the regulation imposed by Title II will negatively impact investment. The balance of the evidence in the record suggests that Title II classification has reduced ISP investment in broadband networks, as well as hampered innovation, because of regulatory uncertainty. The record also demonstrates that small ISPs, many of which serve rural consumers, have been particularly harmed by Title II. And there is no convincing evidence of increased investment in the edge that would compensate for the reduction in network investment.  

Imposing restrictions on 5G network slicing – either by outright prohibitions or by regulatory uncertainty under the vague "general conduct" standard contained in the Draft Order – also would be detrimental to wireless innovation and investment, including investment in the physical infrastructure that supports 5G uses. For more on this topic, see Free State President Randolph May's and Senior Fellow Andrew Long's April 2 Perspectives from FSF Scholars, "The 'Network Slicing' Debate Exposes How Title II Will Kill Innovation." Also, check out FSF President May's FSF Blog post from April 18: "Don't."

AT&T Launches 5G Fixed Wireless Access Service

On Tuesday, AT&T announced the introduction of AT&T Internet Air, its 5G fixed wireless access (FWA) home Internet service, in 16 markets including Los Angeles, Philadelphia, and Detroit. Previously offered only to existing digital subscriber line (DSL) customers in certain areas, the expanded offering of AT&T Internet Air represents yet another milestone in the rapid rise of FWA as a viable competitive alternative to traditional wireline high-speed home Internet access.

In "Fixed Wireless Access Is Boosting Rural Broadband and Consumer Choice," an April 2022 Perspectives from FSF Scholars, FSF Director of Policy Studies and Senior Fellow Seth L. Cooper touted not only FWA's ability "to connect several million Americans in rural and small markets," but also to compete with wireline providers for home Internet customers in more populated markets. This announcement that AT&T is targeting major cities with its FWA service, along with the rapid FWA subscriber gains of T-Mobile, Verizon, and U.S. Cellular, confirm both of those predictions.

Source: AT&T Blog

In a blog post earlier this month, Mr. Cooper highlighted second-quarter FWA subscriber numbers from T-Mobile (509,000 net additions, for a total of 3.7 million), Verizon (384,000 net additions, for a total of 2.3 million, and U.S. Cellular (over 100,000 total subscribers). Notably, these services did not exist prior to 2021.

According to the Leichtman Research Group, T-Mobile and Verizon combined have added over 800,000 FWA subscribers for 5 quarters in a row. In the second quarter of 2023 alone, they added almost 900,000 subscribers – compared to less than 10,000 new cable broadband subscribers and a loss of nearly 62,000 by the top wireline phone companies.

In Comments filed in the FCC's 2022 Communications Marketplace Report proceeding, Free State Foundation scholars argued that the Commission should:

[C]ease its exclusively piecemeal evaluation of broadband marketplace competition that continues to rely on "siloed" service definitions. Instead, it should evaluate competition with a broader "broadband market" definition that takes into account fiber, cable, mobile, FWA, and satellite platforms. This broader outlook would more accurately reflect market realities and be a better guide to formulating Commission policy.

Cable MVNOs and FWA Continue to Gain Subscribers in 2023

One of the most intriguing facets of today's communications marketplace is the intermodal competition enabled by cable wireless mobile virtual network operators (MVNOs) and fixed wireless access (FWA) residential broadband services offered by mobile wireless providers. In late July, both cable MVNOs and FWA providers released positive quarterly reports for the second quarter of 2023, providing an updated picture of these increasingly popular services.

During the second quarter of this year, the gains continued for cable MVNO Charter's Spectrum Mobile. According to its quarterly report that was released on July 31, Spectrum Mobile added 648,000 lines during the end of the quarter. That brought Spectrum Mobile's total to more than 6.6 million mobile lines. And Comcast's Xfinity, which released its quarterly report on July 27, had 316,000 net wireless line additions during the quarter. Xfinity now has just under 6 million wireless lines. 

 

Meanwhile, T-Mobile released its quarterly report on July 27. T-Mobile had 509,000 net subscriber additions for FWA high-speed Internet service, and it ended the quarter with 3.7 million FWA subscribers. Also, Verizon released its quarterly report on July 25. Verizon had 384,000 net additions for its FWA service, bringing its FWA subscriber total up to almost 2.3 million. Notably, U.S. Cellular reported on August 1 that it has surpassed 100,000 subscribers to its FWA service. 

 

Both cable wireless MVNO and FWA services depend on spectrum – both unlicensed and licensed. Right now, the most pressing need is more licensed spectrum to support 5G wireless services, including FWA. The best thing that Congress can do to fill this need is to pass H.R. 3565, the Spectrum Reauthorization Act of 2023. For more on this legislation, see FSF Senior Fellow Andrew Long's July 21 blog post, "Congress Should Reinstate the FCC's Spectrum Auction Authority."

Report: More Licensed Commercial Spectrum Needed to Avoid Looming Deficit

On April 17, CTIA publicly released a report by the Brattle Group, "How Much Licensed Spectrum is Needed to Meet Future Demands for Network Capacity?" This interesting report, which is worth reading in full, presents a scenario regarding macro cellular wireless networks that Congress and federal agencies ought to take very seriously:

We find that if no new spectrum bands are allocated for terrestrial mobile use in the next 5 years, then the U.S. is expected to have a capacity deficit of roughly 10 exabytes per month and a spectrum deficit of roughly 400 megahertz. In ten years, without new mobile spectrum, the capacity deficit will increase to almost 17 exabytes per month and the spectrum deficit will more than triple to approximately 1,400 megahertz.

The Brattle Group's report includes a brief overview analysis of why, in their view, possible technical solutions to reduce or avoid such a spectrum deficit, including Wi-Fi offloading, increased spectral efficiency, and construction of more physical facilities such as towers and small cells will be inadequate means to accommodate growing mobile data traffic demand. Indeed, the report includes the Brattle Group's projection that mobile data traffic in North America will increase from 5,846 petabytes (PB) per month in 2022 to 33,918 PB per month in 2032. 

 

The report's prescription for more commercial licensed spectrum availability is spot on. On the same day of the report's release, the Free State Foundation filed public comments with the NTIA for its Development of a National Spectrum Strategy proceeding. Those comments called attention to the empty spectrum pipeline and called for the repurposing of at least 1,500 MHz of mid-band spectrum for licensed commercial use. 

Report: Wireless Benefits U.S. Economy

On December 7, CTIA published a report by Compass Lexecon titled "The Importance of Licensed Spectrum and Wireless Telecommunications to the American Economy." The report spotlights the economic output and job creation enabled by wireless services between 2011 and 2020:

The substantial investments in licensed spectrum and infrastructure during the past decade have allowed the industry to deliver wireless services to hundreds of millions of consumers throughout the U.S., contributing nearly $9.5 trillion in gross output and $5.4 trillion in GDP to the American economy, and employing an annual average of more than three million people… In 2020 alone, the wireless industry contributed over $1.3 trillion in gross output, $825 billion in GDP, and nearly 4.5 million jobs to the American economy. 

These trillions in output and millions of jobs include the direct effects of the core wireless industry (mobile network operators and resellers) on the economy, as well as the secondary effects of the wireless supply chain and select downstream market segments that rely heavily upon wireless and mobile broadband services (including smartphone app developers, search engines, digital advertising agencies, mobile gaming, and social networking sites). It does not take into account the contributions made by other sectors that also depend on and use wireless services that could represent hundreds of billions in additional gross output and GDP, as well as millions of workers. Therefore, the estimates presented in this study are a baseline, or lower bound, for the contributions made by wireless- related sectors to the American economy. 

The decade's impressive economic output and job creation spurred by the wireless industry depended upon wireless network operator investment of $265 billion in infrastructure during that same period of time. Moreover, "[b]etween 2011 and 2020, spectrum auctions pertaining to wireless services have raised $155 billion in auction revenues."  

Compass Lexecon's report cites many other pro-consumer results from the strong private sector investments made in wireless networks between 2011 and 2020, including significantly expanded competing network coverage, mobile wireless download speed increases, mobile data traffic growth, and downward pricing trends. The report thus provides a reminder of the importance of maintaining a free market-oriented light-touch regulatory framework for wireless broadband services that promotes private investment and innovation. 

Acknowledging that demands for mobile wireless services is expected to increase significantly in the years ahead, the report presents a key policy takeaway for ensuring that wireless providers can meet those future demands: 

For the wireless industry to continue to provide these considerable, widespread positive effects to the American economy, it is necessary to provide mobile network operators access to dedicated, licensed spectrum. It is also important to allow potential licensees to compete to acquire the spectrum licenses, and, once acquired, to allow the licensees to determine the optimal allocation and usage of that spectrum in the economy based on economic market forces. 

The report doesn't analyze any specific bands. But as public debate continues regarding whether exclusive licensed and shared spectrum frameworks ought to be established by Congress or by the FCC for future commercial spectrum allocations, the findings contained in Compass Lexecon's report deserve careful consideration alongside facts, data, and analysis offered by parties with other viewpoints. 

Ericsson Report Spotlights 5G's Second Wave

The latest "Ericsson Mobility Report" was released on November 30. The report summarizes the progress of wireless services on a global as well as regional bases, along with future growth forecasts. The report summarizes the progress of the U.S. in repurposing spectrum for wireless services, particular in the mid-band:

The US is one of a few countries that has significant 5G deployments across low-, mid- and high-band frequencies. Launched in April 2019, 5G services were first available in high- and low-bands. Ten service providers have deployed 5G on low-band, covering over 95 percent of the US population. High-band 5G services are available in 90 cities. The Federal Communication Commission subsequently allocated mid-bands over the course of several auctions during 2020–2022. Currently the three national service providers are rapidly deploying 5G mid-band networks nationwide. Around 80 percent mid-band population coverage is projected by the end of 2022. 

Most of the report's information pertaining to the U.S. is encapsulated in its data for North America:

5G is in the second wave of build-outs and user adoption. The addition of mid-band spectrums now enables superior multi-band 5G experiences for many users. In 2022, 5G adoption continued to grow strongly, with more than 140 million subscriptions expected by the year-end. High-speed internet access to homes and small businesses with Fixed Wireless Access has become the primary technology fueling fixed broadband growth in North America. 5G is also growing in the enterprise segment with wireless WAN to branch office locations and to serve ultra-mobile professions. By 2028, around 420 million 5G subscriptions are expected, accounting for over 90 percent of mobile subscriptions. 

Among the report's forecasts, 5G subscription penetration is expected to reach 35% in North America by the end of this year. And average monthly mobile data usage per smartphone is expected to reach 55 GB in 2028. 

For more statistics and projections regarding wireless services, see the November 2022 edition of the "Ericsson Mobility Report." 

New Study Touts the Affordability of Mobile Broadband in America

On November 30, CTIA announced the publication of "Unpacking the Cost of Mobile Broadband Across Countries," a study by Oxford Economics. The study examines consumer prices for mobile broadband services in different countries and analyzes the affordability of those services in the U.S. and other countries. According to Oxford Economics:

We find that, across all plans, the United States consistently ranks in the most affordable half of the distribution when accounting for the incomes earned by the average household. This is especially true for entry-level plans, with the US ranking as the 3rd most affordable for this mobile service category among the 20 benchmark countries, with an annual cost equivalent to 0.3% of the average household personal disposable income… 

 

Furthermore, our analysis shows US affordability has improved substantially between 2018 and 2021, with entry-level plans falling by 44% as a proportion of household disposable income. 

The study is worth reading in full, and it can be found online at CTIA's website. 

 

Free State Foundation scholars previously have highlighted the pro-consumer pricing performance of broadband Internet services over the last few years – and particularly in the face of harsh inflation. The affordability of mobile broadband services in the U.S. is a fortunate result of the strong private network investment, innovation, and competition in the U.S. wireless market. Preserving the existing federal light-touch policy framework for regulating communications services – including mobile broadband services – is essential to ensuring that mobile services remain affordable for Americans. 

Carriers Set Record With New Fixed Wireless Subscribers

On October 21 and 27, Verizon Wireless and T-Mobile each released their third quarter results for 2022. Both nationwide carries posted record numbers of net subscriber additions to their fixed wireless access (FWA) broadband services. Verizon Wireless reported an impressive 342,000 fixed wireless net additions – a quarterly record for Verizon Wireless. And T-Mobile reported that it added a record high 578,000 high speed Internet customers. Although T-Mobile did not provide a specific service breakdown for that category, its record-breaking figure apparently consists primarily of net additions to its FWA services.

FWA services, which are increasingly offered using 5G networks, are particularly important for their ability to connect costly and difficult-to-reach geographic areas of the country. For more on that point, see my April 2022 Perspectives from FSF Scholars, "Fixed Wireless Access is Boosting Rural Broadband and Consumer Choice." And along with cable mobile virtual network operator (MVNO) wireless services, FWA services are a vibrant form of intermodal competition in today's communications market. 

CTIA Annual Survey: Record-Breaking Investment Benefits Consumers

On Tuesday, CTIA released the 2022 edition of its annual wireless industry survey. Among other milestones, it documents an unprecedented level of investment, accelerated cell-site deployments enabled by regulatory reforms, the explosive adoption by consumers of 5G devices, inflation-defying price decreases, and the rapid rise of fixed wireless as a viable home broadband alternative.

Specific findings from the survey include the following:

In 2021 alone, U.S. wireless carriers spent almost $35 billion "to grow, improve and run their networks." As the following chart illustrates, that record-breaking total represents the fourth straight year of increased annual investment.

Thanks to efforts by the FCC and the states to streamline siting regulations, 69,543 cell sites – 62 percent of the post-2016 total – were constructed in the two years between 2019 and 2021.

5G service today is available to 315 million Americans. And consumers are adopting this mobile broadband technology at a brisk pace: the total number of deployed 5G-capable devices grew by over 500 percent during just the past year. Consequently, one in three adults now have a 5G-capable smartphone or other device.

While consumer prices overall have increased by 94 percent thanks to "historic" levels of inflation, prices for unlimited data plans have fallen by nearly half since 2010.

5G fixed wireless quickly has emerged as a viable competitive alternative for home broadband service: over 40 million households already have access to this option.

Highlights from CTIA's 2022 Annual Survey are available here.

Finally – Hempstead, New York Residents Get Improved Wireless Coverage

Perhaps it's not earth-shaking news that a Long Island town reached a settlement with Crown Castle, approved by a federal district court magistrate, allowing the company to install 43 small wireless antennas. Indeed, it shouldn't have to be.

But in this instance the settlement is newsworthy because Crown Castle filed suit back in 2017 after the town of Hempstead denied the company's plan to construct the wireless facilities which Crown Castle said were necessary to plug gaps in the town's wireless broadband coverage. The court's order states that without the requested antennas, Crown Castle "will be materially inhibited or limited from providing personal wireless and telecommunications services."

It's telling the court ordered Hempstead not to further utilize the consultant that had been involved in advising the town in any further review of any application related to the now-approved antennas. And the court ordered Hempstead to pay Crown Castle $121,273, "representing a return of previously filed consultant escrow funds."

It's important for the residents of Hempstead – finally, five years after the filing of Crown Castle's lawsuit – to have the matter resolved so that they can enjoy improvement in their broadband wireless connectivity. But the real significance of the case goes far beyond one town on Long Island. Unreasonable delays by cities and towns across America in processing wireless facilities applications all too often lead to unnecessary and costly litigation before the facilities deployment can move forward. While local authorities have a role to play in considering applications for local facilities, obstructive actions which are inconsistent with the FCC's rules and policies regarding wireless deployment reduce overall consumer welfare and the nation's social and economic well-being.

The Hempstead, New York, case, and there are many other examples, demonstrates why various actions taken by Congress and the FCC requiring a streamlined wireless facilities approval process are important. And it shows why it's also important that there be no backsliding by the FCC or other policymakers that would allow – indeed, encourage – more Hempsteads to continue imposing unreasonable, and unlawful, roadblocks thwarting the deployment of wireless facilities, including, of course, small 5G antennas.