Looming spectrum shortfall could cost America's GDP $1.4T, jeopardize continued function of U.S. networks, new report finds.

Increased consumer demand for wireless data necessitates more spectrum for U.S. wireless networks, according to a report by Accenture commissioned by CTIA. The report outlines a spectrum shortfall that could potentially cost the U.S. economy $1.4 trillion in lost growth over the next decade. As demand rises, it is projected that by 2027, networks will not meet nearly a quarter of traffic demand in high-traffic regions during peak hours, growing to nearly three-quarters unmet by 2035. The lack of spectrum is also expected to hinder advancements in technologies such as Artificial Intelligence (AI), with demands from AI devices expected to exceed capacity as soon as 2028.

The report, titled Securing the Future of U.S. Wireless Networks: The Looming Spectrum Crisis, indicates an 89% increase in wireless data usage since 2021, predicted to triple by 2029 without additional 5G-ready spectrum. The absence of sufficient spectrum may result in poorer network performance, leading to slower speeds and higher call failure rates. Meredith Attwell Baker, CTIA President and CEO, stated that the “growing spectrum deficit presents a growing risk to American economic growth and innovation.”

Key findings of the study indicate that the U.S. lags behind other countries in available mid-band spectrum; economic risks include potential annual losses of around $300 billion by 2035; and national security may be jeopardized by reliance on foreign technologies. The report recommends actions for policymakers to address the spectrum shortage in order to secure economic benefits, attract talent, and maintain leadership in wireless technology.