The new iPhone 14 includes technology that would have cost more than $100 million to offer in 1991, American Enterprise Institute fellow Bret Swanson blogged Wednesday, noting the rate of technological advance. “The highest-end model includes one terabyte of digital storage, which is 63 times more than the original iPhone, launched in 2007, and which alone would have cost around $45 million in 1991,” the economist said: “Add in the A16 processor, the 5G modem, including new millimeter wave capabilities of up to 500 megabits per second, an amazing graphics processor, and four cameras totaling 84 megapixels, and you’ve got a device that would have cost at least $101 million to build in 1991.”
A new CTIA-funded study by Accenture said the U.S. wireless industry has access to only 5% of lower mid-band spectrum, while unlicensed spectrum users have access to seven times as much, government users 12 times. The study proposes three bands for licensed use. The 3.1-3.45 GHz band “offers reliable coverage and adequate range of coverage, making it ideal for 5G data traffic,” the study said: “This band is adjacent to the recently auctioned 3.45 GHz band, which would help drive lower costs for device manufacturers when developing products for a wider contiguous band,” the study said. The 4.4-4.94 GHz band “has been allocated to wireless carriers in many other nations, meaning a similar allocation in the U.S. would support international harmonization efforts yielding cost benefits,” Accenture advised: “The 7 to 8.4 GHz range is a significant block of higher frequency contiguous spectrum. The capacity characteristics of this range make it ideal for serving densely populated areas such as urban centers, where traffic requirements are greater.”
T-Mobile unveiled a 5G Advanced Network Solutions suite of products aimed at smart retail, cities and manufacturing. “We are on the precipice of billions of AI-powered devices, all connected by 5G with efficient application processors, all converging to provide intelligent data-driven insights,” said Callie Field, president of T-Mobile Business Group, Wednesday: “Technologies are pushing the limits of most companies’ IT organizations. That’s why we’ve been working closely with many of these organizations to develop specific solutions that address their unique challenges.”
NextWave, a private network service provider, said Monday it’s launching wide-area 2.5 GHz network services in the New York metro area, which it will offer to companies building private networks. NextWave said it’s the biggest holder of 2.5 GHz licenses other than T-Mobile. The phase I network deployment covers much of Manhattan and the immediately surrounding boroughs, while “Phase II deployments will cover the entire New York metro area of approximately 15 million people by early 2023,” the company said. “While the private networking era is clearly here, industrial and enterprise users still must cope with both limited ecosystems and limited network coverage,” said CEO Frank Cassou: “Unlike other private networking options, the NextWave solution provides both wide-area coverage and the ability to utilize popular smartphones and other widely available mobile broadband devices.” NextWave said it plans launches in San Francisco, Los Angeles and Philadelphia by early next year. The spectrum would have been well-suited for T-Mobile, LightShed’s Walter Piecyk told investors. “We estimated T-Mobile should pay upwards of $2.5 billion for this asset, but T-Mobile has likely dug in its heels on price negotiations,” he said: “The new wrinkle is that NextWave is now putting this critical wireless asset to use, perhaps putting it out of T-Mobile’s reach for good. … T-Mobile will now have to hope that NextWave’s new network does not gain traction or that another buyer does not emerge.”
The global uptake of 5G networks “is now doubling every year” hitting 813 million connections in Q2, and on target to reach 1.1 billion by the end of the year, 5G Americas said Wednesday. “The progress of 5G continues throughout the Americas with more spectrum, coverage, and usage,” said President Chris Pearson: “We are entering an era of innovation with an expanding 5G ecosystem that is learning how to take advantage of the technical capabilities of this great technology.” Recent data from Omdia found the world added 430 million global 5G connections year-over-year from Q2 2021, the group said. “Global 5G connections are forecast to again accelerate in 2023, approaching 2 billion and reaching 5.9 billion by the end of 2027,” 5G Americas said.
In an updated report, Analysys Mason said the U.S. “continues to trail leading countries in available licensed mid-band spectrum, a trend expected to continue for the foreseeable future if no action is taken,” said CTIA, which commissioned the report released Tuesday: “The U.S. lags the top three studied nations -- Japan, the United Kingdom and France -- by 530 MHz on average. In five years, the U.S. will continue to lag, trailing the future top three countries by 415 MHz on average.” The report stresses the need for licensed spectrum in the 3-7 GHz range. It notes that only two countries plan to make more unlicensed spectrum available in the next five years and both will continue to trail the U.S. “The U.S. is also an outlier as the only country to make unlicensed spectrum available between 3.3 GHz and 4.2 GHz,” the analysis said. The U.S. targeted 6 GHz for unlicensed use, and China is considering licensing the band. “The FCC made great progress with recent mid-band spectrum auctions, but this study shows there is more work to be done,” said CTIA President Meredith Baker.
Broadband and 5G training by the Wireless Infrastructure Association received approval for four credentials in Ohio’s TechCred program. Employees who participate in the training will be eligible for reimbursement through state grants, WIA said Monday. Employers with a physical presence in the state may apply for the funding.
The U.S. wireless industry invested nearly $35 billion in its networks last year, a record and the fourth straight year of increased capital spending, CTIA said in its annual report released Tuesday. “5G networks now cover over 315 million Americans, one-in-three American adults have a 5G device, and 5G is now the fastest-growing segment of the home broadband market,” CTIA said: “Wireless industry competition also helped keep prices low during a period of rampant inflation. While prices across industries are increasing, the cost of wireless decreased.” Mobile wireless data traffic increased to 53.4 trillion MBs and providers “have added nearly 70,000 active cell sites since the FCC and state legislators modernized key siting regulations,” the group said.
The FCC should use as a model the 3rd Generation Partnership Project's adjacent channel rejection standard, which requires wireless receivers “to reject signals on adjacent channels even if they are stronger than the primary signal,” consultant Preston Padden said in a filing Friday in docket 22-137, the FCC receiver performance docket. “Given the plethora of wireless allocations, our entire system of wireless communications would not be possible without this requirement,” he said: “As spectrum becomes more scarce and demand continues to increase, the FCC must adopt strict receiver standards -- not compromise half-measures.”
New Street isn’t forecasting a recession, but if one happens the firm would be “incrementally more positive on T-Mobile and Cable as the economic weakness would likely drive adds at those operators above our already-bullish expectations,” analyst Jonathan Chaplin told investors Tuesday. “T-Mobile has done incredibly well in the value segment in urban markets, but share gains at the high end of the market have been slower going,” he said. “T-Mobile’s lead in 5G network coverage and performance, coupled with households becoming more price sensitive, should accelerate share gains here.” New Street also sees postpaid plans now as a better value than prepaid, a change over past years. “Competition has driven down the price of postpaid plans, while eliminating barriers to adoption (contracts; credit thresholds),” he said: “Service pricing is now similar and, in some cases, lower for unlimited postpaid plans. When you factor in device subsidies, content, and other features included in postpaid plans, they are a much better value than prepaid.” Chaplin noted AT&T has added subscribers in recent quarters, but a question is how many were from Sprint, following that company’s buy by T-Mobile. “The next test for the industry will be how Verizon and AT&T respond if their net adds suffer, now that the Sprint network integration has largely run its course,” he said.