Report warns of major wireless shortfall by 2027, $1T+ in costs

A Thursday report from IT consulting firm Accenture, commissioned by wireless trade association CTIA, warns of a projected spectrum shortfall that could see demand overwhelm existing infrastructure by next year and cause substantial outages by 2027.

"The U.S. faces a spectrum crisis, with long-term negative implications for U.S. economic growth. Rising demand on
networks and constrained supply is pushing networks to their limit," the executive summary opened. "By 2027, the U.S. is expected to face a critical spectrum deficit, where the available spectrum will not be able to support connectivity demand in high-traffic areas during peak hours."

Should the U.S. fail to act, Accenture projected a net economic opportunity costs of $300 billion annually for the next ten years and a cumulative loss of $1.4 trillion by 2035.

"Immediate action is necessary to prevent the negative impacts of a spectrum shortage on enterprises, consumers, and the U.S. economy," the report concluded. "By licensing more spectrum, the U.S. can ensure reliable wireless infrastructure, support advanced wireless technology use cases, and enhance the quality of life for its citizens."

The report comes as Sen. Ted Cruz, R-Texas, and former Federal Communications Commission Chairman Brendan Carr have urged Congress to invest in the industry.

"U.S. leadership in wireless is also part and parcel of America's geopolitical leadership and national security. When we free up spectrum, the world takes notice," Carr wrote to key congressional leaders. "Passing legislation that establishes a new pipeline of mid-band spectrum is vital to our economy and national security."

“The next wireless leap—whether it’s driverless cars, remote surgeries, and air taxis—may be just around the corner. But whether Americans will reap the benefits—and whether it will be made here or overseas—depends on our will to unlock more spectrum," Cruz stated in a Senate Commerce Committee hearing in February.