It is predicted that unlicensed access to the 6 GHz band will add US$150.27 billion to the Mexican economy and up to US$58.93 billion to the Colombian economy between 2021 and 2030
Over the next 10 years, the Colombian and Mexican economies could benefit if they decide to enable unlicensed access to the 5925-7125 MHz band, according to studies published by the Dynamic Spectrum Alliance (DSA) and Telecom Advisory Services LLC (TAS). The two new studies, titled “Assessing the economic value of unlicensed use in the 6 GHz band in Mexico” and “Assessing the economic value of unlicensed use in the 6 GHz band in Colombia”, were conducted by Dr. Raul Katz and Fernando Callorda, leading scholars of economics and telecommunications policy. These studies follow findings by the DSA and TAS that 6 GHz unlicensed access will add $163.5 billion to Brazil economy.
The two new studies assessed the economic value of unlicensed use of the band in Mexico and Colombia, by assessing the impact on service quality, coverage, affordability and the impact on different applications and use cases. The methodology relied upon in this study identified the different sources of economic value, estimated them independently and then aggregated within a single value. Its findings revealed a significant early economic impact following the allocation of 1,200 MHz in the 6 GHz band for unlicensed use.
Some of the sources of value include enhanced broadband coverage and improved affordability, increased speed by reducing Wi-Fi congestion, enhanced deployment of municipal Wi-Fi and deployment of Free Wi-Fi Hotspots, which provide for Internet access for households that cannot purchase a broadband plan. All this while ensuring that existing incumbent services can continue to thrive in the band because incumbents can coexist with Wi-Fi 6E, the new generation of Wi-Fi that operates in the 6 GHz band.
In the case of Mexico, the cumulative economic value between 2021 and 2030 associated with enabling license-exempt access to the 1200 MHz in the 6 GHz band amounts to US$ 71.96 billion in GDP contribution, US$ 56.18 billion in producer surplus to Mexican enterprises, and US$ 22.13 billion in consumer surplus to the Mexican population. The total contribution amounts to US$ 150.27 billion to the Mexican economy over the next 10 years.
In the case of Colombia, the cumulative economic value between 2021 and 2030 associated with enabling license-exempt access to the 1200 MHz in the 6 GHz band amounts up to US$ 39.69 billion in GDP contribution, US$ 9.93 billion in producer surplus to Colombian enterprises, and US$ 9.31 billion in consumer surplus to the Colombian population. The total contribution amounts up to US$ 58.93 billion to the Colombian economy over the next 10 years.
“License-exempt use of the entire 6 GHz band for Wi-Fi will be critical to address current pressing bandwidth demands for end users, new applications and industries,” said Martha Suarez, President of the DSA. “The different use case operations from 5925 to 7125 MHz will allow growing ultra-fast Wi-Fi demands to be met, new applications such as Augmented and Virtual Reality and new innovations that require high-quality, real-time connectivity. Used for every aspect in our lives such as remote education, work and commerce, Wi-Fi needs greater spectrum access in the 6 GHz band to effectively support the modern digital ecosystem.”
The DSA encourages the Mexican and Colombian spectrum authorities to consider the impact of this economic benefit by allowing unlicensed operations in the 6 GHz frequency band, making a more efficient use of the spectrum compared to the current use, protecting incumbents and increasing broadband connectivity in these two countries.
The full findings of the Colombia and Mexico reports are available online.
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