CBRS Sharing Falls Short of Expectations, Carries High Opportunity Cost, New Study Shows

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Nov 14, 2022, 10:00 ET

WASHINGTON, Nov. 14, 2022 /PRNewswire/ -- CBRS spectrum is underutilized and failed to meet proponents' expectations, according to a new study from Recon Analytics. The review, commissioned by CTIA, shows CBRS remains unproven and carries a heavy opportunity cost when compared to exclusive-use, licensed commercial spectrum which is increasingly efficient, highly utilized, enabling innovative 5G use cases and supporting long-term economic growth.

CBRS spectrum is underutilized and failed to meet proponents’ expectations, according to a new study from Recon Analytics. The review, commissioned by CTIA, shows CBRS remains unproven and carries a heavy opportunity cost when compared to exclusive-use, licensed commercial spectrum which is increasingly efficient, highly utilized, enabling innovative 5G use cases and supporting long-term economic growth.

"A review of today's CBRS marketplace shows that CBRS does not live up to the hype as the foundation of innovation and should not be a model for future spectrum policy," said Roger Entner, Founder and Lead Analyst, Recon Analytics. "Real-world studies show low utilization, low market demand, and a dearth of innovative use cases."

CBRS is a complicated spectrum management system created in 2012 to allow government and commercial users to share spectrum in the 3.5 GHz band. It was created to explore sharing as an alternative to auctioning spectrum for exclusive, licensed commercial use. Rights to use the spectrum are managed dynamically, with higher priority government users able to supersede the rights of commercial users who paid for priority access, and a lower tier of users with free access.

Recon Analytics conducted a comprehensive review of the publicly available information about CBRS performance, uses cases and market dynamics following the commercialization of the band and found that:

There are few real-world studies on CBRS usage. Those that exist suggest CBRS spectrum is underutilized.
The most prevalent use cases are traditional wireless deployments, suggesting CBRS is not driving innovative new use cases.
Spectrum sharing technology is complicated, discouraging adoption. Some vendors have abandoned the market altogether.

In addition, the paper finds that exclusive-use, licensed commercial spectrum has succeeded in the areas where CBRS has fallen short. Wireless providers have increased their spectrum efficiency by 42% over the past decade, prices have declined 43%, and spectrum auctions have proven to deliver more than $177B to the US treasury.

"Licensed spectrum is the platform of the 5G economy that is transforming the way we live and work," said Meredith Attwell Baker, President and CEO, CTIA. "Data use is up, prices are down, and we are already seeing innovations from driverless cars to AR/VR education – all thanks to exclusive-use, licensed spectrum. We need policymakers to focus on creating a pipeline of additional licensed spectrum to build on this foundation and secure America's innovation leadership, and not export a still unproven experiment to additional bands."

"Given the highly effective, proven track record of exclusive-use licensed spectrum, need for more data on CBRS' performance, and the fact that all available data points to CBRS underperforming expectations, policymakers should refrain from using CBRS sharing as a model for bands in the future," Entner concludes.

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.

About Recon Analytics

The mission of Recon Analytics is to clear the clutter, help focus executives and policymakers on what is actually happening in the marketplace and what really matters, and make a positive impact on business and policy decisions. Founded and led by leading telecom analyst Roger Entner, Recon Analytics' approach is bolstered by its industry-first executive advisory board, which helps us hone our strategy, improve our research, and provide unparalleled insights into the matters most relevant to the business and the public policies impacting it. With this foundation, Recon Analytics focuses on three core areas: Syndicated research, custom consulting, and policy related data analysis.

SOURCE CTIA