The Looming Spectrum Crisis

Investment Rating - The report indicates a critical need for additional mid-band spectrum licensing to avoid a looming spectrum crisis in U.S. wireless networks, which could significantly impact economic growth and technological leadership [6][14][49]. Core Insights - The U.S. is facing a spectrum crisis that threatens to degrade wireless network performance and economic growth, with a projected loss of $1.4 trillion in GDP between 2025 and 2035 if additional spectrum is not licensed [6][13][15]. - By 2027, U.S. networks will be unable to meet nearly 25$1.4 trillion in potential GDP between 2025 and 2035 [6][15]. Spectrum Shortfall Impacts on Wireless Networks - The spectrum shortfall will start impacting consumers as early as 2026, with significant congestion expected by 2027 [9][10]. - By 2027, the U.S. will face a spectrum deficit of 401 MHz, which could triple to 1,423 MHz by 2032 if no new spectrum is licensed [17][79]. The Risk to Enterprises without More Spectrum - Upstream manufacturers and ecosystem solution providers will lack the incentive to innovate, leading to a loss of access to next-generation technologies for enterprise end-users [11][144]. - The lack of spectrum will adversely affect productivity and market development opportunities across the wireless connectivity value chain [144]. Downstream Consequences for Consumers - Consumers will experience degraded service quality, with increased latency and reduced bandwidth, impacting their quality of life [36][39]. - Next-generation technologies, such as mobile AI applications and autonomous vehicles, will struggle to reach the market due to insufficient spectrum [12][36]. Call to Action: Core Recommendation - Policymakers must urgently license additional mid-band spectrum to address the looming spectrum deficit and ensure the U.S. maintains its global technology leadership [14][49].