Phoenix Center: 5G Isn't an Engine for Economic Growth
A new report from the Phoenix Center questions whether 5G has been the huge boon for the U.S. economy that the wireless industry claims. The report, released Wednesday, comes as the Trump administration launches a push to make 600 MHz of midband spectrum available for licensed use (see 2505270045). It disputes findings from a January study released by CTIA that each additional 100 MHz of midband spectrum set aside for carrier use will add $260 billion to the national GDP, generate $390 billion in consumer benefits and create 1.5 million jobs (see 2501230041).
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“There is no evidence that 5G deployment has improved employment, wages, business growth, personal income, or GDP,” wrote George Ford, the center’s chief economist, in the report. "Despite the industry’s sweeping promises, the data show no measurable economic impact from 5G so far.” He said 5G has value -- “better connectivity can support specific use cases and improve service quality” -- but that doesn’t mean it's “a fundamental economic game-changer.”
Policymakers should “proceed with caution” as they consider dedicating more spectrum to 5G, Ford wrote. “Public resources and regulatory choices should be guided by evidence -- not marketing campaigns.” He told us in an email that the Phoenix Center doesn’t do funded research. “I was just calling a spade a spade,” he said: “The arguments CTIA makes have nothing to do with the economics of spectrum allocation. There are good arguments available, but this GDP/employment stuff is not one of them.”
The wireless industry “invests tens of billions each year in the U.S. economy, including $190B and counting, to build America’s 5G networks,” a CTIA spokesperson said in an email. 5G “is driving innovation across industries and is responsible for the first real competition in home broadband in decades,” the spokesperson added: “Any economic analysis that values hundreds of millions in direct investment and billions more in consumer savings at zero is simply not credible.”