Exponential increase in consumer demand for wireless data means U.S. wireless networks need more spectrum to maintain network quality and service.
WASHINGTON, March 27, 2025 -- Without more full-powered midband spectrum, wireless networks will not be able to handle increased consumer demand, according to a new report by Accenture, commissioned by CTIA, the wireless industry association. This spectrum shortfall could cost the U.S. more than $1.4 trillion of economic growth over the next 10 years. By 2027, networks will be unable to meet nearly a quarter of traffic demand in high-traffic areas during peak hours, growing to nearly three quarters of demand unmet by 2035. This lack of spectrum will also undermine key advancements in next-generation technology, such as artificial intelligence. Studies show that wireless networks will struggle to meet mobile AI demands, with data traffic from AI-enabled devices outpacing capacity as soon as 2028 and growing to over a third of this AI demand being unmet by 2029.
The report, Securing the Future of U.S. Wireless Networks: The Looming Spectrum Crisis, highlights an 89% increase in wireless data usage since 2021, which is expected grow three times more by 2029. To keep up with this demand, America needs more 5G-ready spectrum. Without this spectrum, network performance will be degraded, with consumers experiencing slower speeds, more dropped calls, and longer loading times. The report explains, "if the US does not close the spectrum gap, consumers will be left without access to next-generation products and services."
Some key findings of the study include:
- Mid-Band Spectrum Gap: The U.S. lags global peers in mid-band spectrum available for commercial use, with leading nations expected to have more than double the mid-band that mobile operators have access to in America by 2027.
- Economic Risks: Insufficient spectrum will degrade network performance, causing widespread consumer and enterprise disruptions, from failed video streams to compromised emergency communications. By 2035, this will result in an annual lost opportunity of $300 billion, totaling $1.4 trillion of foregone potential growth over the next 10 years.
- National Security Concerns: Limited spectrum increases reliance on foreign technologies, posing risks to U.S. critical infrastructure and security.
- Impact on Innovation: Without additional spectrum, U.S. network operators and industries will struggle to maintain R&D momentum, curbing the innovation needed to sustain global leadership in 5G and beyond. By lagging in spectrum availability, the U.S. is giving other countries an opportunity to set the wireless standards of the future.
"Wireless is the engine of America's economy and the foundation of our global economic competitiveness," said Meredith Attwell Baker, CTIA President and CEO. "But our growing spectrum deficit presents a growing risk to American economic growth and innovation. America needs a pipeline of full-power, mid-band spectrum auctions to meet demand, grow our economy and secure America's 5G leadership."
"Investing in spectrum resources and transforming enterprise networks is essential for economic growth," said Tejas Rao, managing director, Cloud First Advisory - Communications, Media and High-Tech, Accenture. "We have the opportunity to drive reinvention by unlocking new applications, using edge and AI to create new experiences, and drive cost and productivity benefits—enabled by powerful wireless capabilities."
The study recommends several actions for policymakers to prevent the negative impacts of a spectrum shortage on enterprises, consumers and the U.S. economy. Allocating commercial mid-band spectrum will be key to capture significant economic benefits, attract talent and investment, and maintain its global leadership in wireless technology in the future.
About CTIA
CTIA® (www.ctia.org) represents the U.S. wireless communications industry and the companies throughout the mobile ecosystem that enable Americans to lead a 21st century connected life. The association's members include wireless carriers, device manufacturers, suppliers as well as apps and content companies. CTIA vigorously advocates at all levels of government for policies that foster continued wireless innovation and investment. The association also coordinates the industry's voluntary best practices, hosts educational events that promote the wireless industry and co-produces the industry's leading wireless tradeshow. CTIA was founded in 1984 and is based in Washington, D.C.
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