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It is predicted that unlicensed access to the 6 GHz band will add US$ 187.63 billion to the Indonesian economy, and up an accumulated US$ 150.19 billion to the economies of Kenya, Nigeria and South Africa.
Washington D.C., USA, 24 February: The economies of Indonesia, Kenya, Nigeria and South Africa 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 the Telecom Advisory Services LLC (TAS). The four new studies were conducted by Dr. Raul Katz and Fernando Callorda, leading scholars of economics and telecommunications policy. They show that over the next ten years, if regulations for licence-exempt access are adopted, billions of dollars could be added to the economies of each country.
The four new studies assessed the economic value of unlicensed use of the band in Indonesia, Kenya, Nigeria and South Africa 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. These findings revealed a significant early economic impact following the designation of 1,200 MHz in the 6 GHz band for unlicensed use for applications such as Wi-Fi 6E, the new generation of Wi-Fi that operates in the 6 GHz band.
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, such as satellites and fixed links can continue to thrive in the band.
In the case of Indonesia, the cumulative economic value between 2022 and 2031 associated with enabling license-exempt access to the 1200 MHz in the 6 GHz band amounts to US$ 126.44 billion in GDP contribution, US$ 37.73 billion in producer surplus to Indonesian enterprises, and US$ 23.47 billion in consumer surplus to the Indonesian population. The total contribution amounts to US$ 187.63 billion to the Indonesian economy over the next 10 years.
In the case of Kenya, 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$ 14.28 billion in GDP contribution, US$ 1.12 billion in producer surplus to Kenyan enterprises, and US$ 4.89 billion in consumer surplus to the Kenyan population. The total contribution amounts up to US$ 20.29 billion to the Kenyan economy over the next 10 years.
For Nigeria, 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$ 49.89 billion in GDP contribution, US$ 10.51 billion in producer surplus to Nigerian enterprises, and US$ 11.74 billion in consumer surplus to the Nigerian population. The total contribution amounts up to US$ 72.14 billion to the Nigerian economy over the next 10 years.
For South Africa, 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$ 34.81 billion in GDP contribution, US$ 13.32 billion in producer surplus to South African enterprises, and US$ 9.63 billion in consumer surplus to the South African population. The total contribution amounts up to US$ 57.76 billion to the South African 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. “It will also play a crucial role in bridging the digital divide in these countries, enabling improved access to 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 Indonesian, Kenyan, Nigerian and South African 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 four countries.
These studies were carried out in collaboration with the UK Foreign, Commonwealth & Development Office’s Digital Access Program (DAP). The full findings of the Indonesia, Kenya, Nigeria and South Africa reports are available online, via the DSA website: http://dynamicspectrumalliance.org/resources/.
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About the Dynamic Spectrum Alliance
The Dynamic Spectrum Alliance is a global organization advocating for laws and regulations that will lead to more efficient and effective spectrum utilization. The DSA’s membership spans multinationals, small- and medium-sized enterprises, and academic, research, and other organizations from around the world, all working to create innovative solutions that will increase the amount of available spectrum to the benefit of consumers and businesses alike.
For more information, visit: http://www.dynamicspectrumalliance.org/.
Keep up to date with the latest DSA activities by following the Dynamic Spectrum Alliance on Twitter, Facebook, or LinkedIn.
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About Telecom Advisory Services LLC
Telecom Advisory Services LLC is an international consulting firm registered in the state of New York (United States), with physical presence in New York, Madrid, Bogotá and Buenos Aires. Founded in 2006, the firm specializes in the development of business strategies and public policies for digital and telecommunications companies, governments, and international organizations. Its clients include leading companies in the digital and telecommunications sectors, as well as international organizations and the governments of Argentina, Colombia, Ecuador, Costa Rica, Mexico and Peru.
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