New Study Demonstrates Economic Advantages of Spectrum Sharing

Report from the Brattle Group compares economic benefits for shared and exclusive licensing, including in the 3 GHz band.

WASHINGTON, DC [September 21, 2023] – Spectrum for the Future, a diverse coalition of innovators, anchor institutions, and technology companies, today released a new study from the Brattle Group that outlines a clear, evidence-based framework for comparing the costs and benefits of exclusive versus shared licensing. The study also offers unique insights into the economic advantages of spectrum sharing in the lower 3 GHz band.

“The report showcases the economic advantages of shared licensing, especially when relocating existing users would impose heavy costs,” said Spectrum for the Future spokesperson Tamara Smith. “A shared model opens the door for greater competition and innovation among diverse users, including those in rural and remote areas not served by traditional carriers and U.S. manufacturers using private wireless networks. In the 3.1-3.45 GHz band, for example, a shared approach can generate almost $19 billion in revenue for the American people to pay down the deficit or fund new priorities. On the other hand, the analysis shows that exclusive licensing would impose a net loss, causing the auction of those licenses to fail.”

“Greater demand for wireless spectrum can no longer be met by clearing and auctioning bands. In this paper, the Brattle Group provides a more robust framework for accurately comparing the full array of options now available,” concluded Smith.

The report comes at an important time as policymakers address the lapse in the Federal Communications Commission (FCC)’s spectrum auction authority and regulators chart a course for the future of the 3.1-3.45 GHz band.

“[S]hared spectrum is an increasingly important tool for getting the most benefit from limited spectrum resources and maximizing both public and private returns,” wrote the Brattle Group.

Read the full report here or check out Spectrum for the Future’s summary here.

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Spectrum for the Future promotes an inclusive approach to spectrum policy that includes licensed, unlicensed, and shared licensed uses, including the Citizens Broadband Radio Service (CBRS) spectrum-sharing model, which has fulfilled its promise as the “innovation band” in an incredibly short period of time. To learn more about the coalition, visit SpectrumFuture.com.