2023 Will Be 'Wild, Uncomfortable Year' for Wireless Industry, Strand Predicts

Strand Consult warned that 2023 will be a “wild, uncomfortable year,” with the upheaval ahead having big implications for the mobile wireless industry. “There is war in Europe, a global energy crisis, and inflation which has made almost everything more expensive and disrupted many financial markets. China’s menace in Taiwan puts the world’s leaders on edge and imperils the supply of 90 percent of the world’s semiconductor manufacturing,” CEO John Strand blogged Thursday: “Board leaders and directors should ask themselves what is their plan [in the] case of China shutting down supply lines tomorrow.” He warned of implications for wireless. “Rising interest rates depress returns on capital, and investors' willingness to invest in infrastructure,” Strand said. “Relationships with authoritarian governments pose reputational risks,” it said: “An operator can’t stick its head into the ground and pretend nothing is happening. Indeed operators which have opted out of Huawei and ZTE will gain an advantage over those which claim that there are no risks to using Chinese network equipment. … This message will resonate with policymakers, customers, and shareholders.” Strand also noted many questions about spectrum, with Congress failing to reauthorize FCC auction authority beyond a three-month extension. “It’s hard to contemplate a modern nation being so irresponsible,” he said. “It is remarkable that the US has achieved such incredible wireless success to date given the limited access to frequencies. But to compete with China in the future, the US will need a more aggressive approach to making mid-band spectrum available for exclusive licensed use,” he said.