U.S. 5G “available everywhere” speeds lag speeds for most 5G networks deployed elsewhere, for reasons directly related to the spectrum assets available at launch. Simply put, most other 5G networks globally were able to use mid-band spectrum.
U.S. operators for the most part had to rely on low-band spectrum, spectrum sharing or spot deployment of millimeter wave spectrum in the most-dense areas. That is why the Citizens Broadband Radio Service and current C-band auctions are so important: they will supply lots of mid-band spectrum for 5G.
At the moment, on some U.S. networks, 4G might be faster than 5G. On other networks 5G speeds will be comparable to 4G. The reasons have everything to do with the spectrum assets presently deployed.
Up to this point, T-Mobile 5G has used low-band spectrum for coverage, as have AT&T 5G networks. That inherently means lower speeds than will be possible when millimeter wave spectrum is more widely deployed and as mid-band spectrum becomes the primary coverage layer spectrum.
Verizon, which has very little spectrum available to support 5G, has used dynamic spectrum sharing, allowing its 4G network to support 5G devices. It helps, but is not a panacea. Keep in mind that Verizon, with the most customers, and the least, spectrum-per-customer will find even this bridge strategy difficult.
The main takeaway is that, for U.S. mobile operators, the coming mid-band capabilities will dramatically boost 5G speeds. As that happens 5G performance will change dramatically, for most potential users. For some use cases, millimeter wave assets will radically boost speeds.
The robust bidding for 280 MHz of C-band spectrum is an indication of the importance mobile operators place on mid-band assets. T-Mobile’s purchase of Sprint likewise was driven in large part by access to the trove of mid-band spectrum Sprint possessed.
Spectrum prices in the recent CBRS auctions (also of new mid-band spectrum) generated average prices per person (per MHz-POP) of about 21.6 cents. The C-band auction already has average prices of about 79 cents per MHz-POP, higher when including the additional clearing payments to existing licensees. Including those payments, we already have hit about 95 cents per MHz-POP in the C-band auction.
Prices for the A block of frequencies, which it is estimated can be put into commercial use as much as two years earlier than the BC block, are running higher. After the end of round 44 of bidding, A block licenses were at an average of $1.21 per MHz-POP, with a price of $1.54 including the cost of clearing existing users from the spectrum.
The point is that, as with the early days of any new mobile platform, performance and coverage will constantly shift. That arguably is especially true in the U.S. market, where the crucial mid-band spectrum is just now being awarded.
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