Lessons from the History of Wi-Fi

Investment Rating - The report does not explicitly provide an investment rating for the Wi-Fi industry Core Insights - The Wi-Fi industry faces challenges due to an over-allocation of spectrum, which does not necessarily enhance user experience or performance [4][5][6] - The performance improvements across Wi-Fi generations have diminished, with Wi-Fi 4 showing the most significant advancements compared to its predecessors [28][29] - The need for additional unlicensed spectrum is questioned, as current performance levels exceed the requirements for typical applications [15][29] Summary by Sections Introduction - The evolution of wireless communication has seen cellular networks grow to nine billion subscribers, while Wi-Fi connects nearly 20 billion devices globally [2][3] Spectrum Allocation - The U.S. has allocated significantly more mid-band spectrum to unlicensed Wi-Fi compared to licensed networks, which contrasts with Japan's balanced approach [3][6] - The report advocates for a rationalization of spectrum allocations to support both licensed and unlicensed technologies effectively [6][7] Performance Analysis - Wi-Fi 4 achieved a 760% increase in download bandwidth and 588% in uploads, while subsequent generations have shown modest improvements [8][28] - Testing indicates that Wi-Fi 7 can achieve high throughput of 3 Gbps at close range, but performance drops significantly with distance [19][26] Regulatory Challenges - The report highlights the need for better spectrum management and the potential for additional spectrum to support licensed networks facing congestion [5][6] - It suggests that the U.S. should aim to auction an additional 1500 MHz of spectrum to correct imbalances in allocation [7][36] Simulation and Predictions - Various simulation studies have produced conflicting estimates of spectrum needs, indicating a lack of consensus on the future requirements for Wi-Fi [33][36] - The report critiques the reliance on simulations that do not accurately reflect real-world conditions, emphasizing the need for more realistic modeling [9][33]