Speeding up and making $183 billion in revenue, in the shadow of 6GHz Wi-Fi


Speeding up and making $183 billion in revenue, in the shadow of 6GHz Wi-Fi

Speeding up and making $183 billion in revenue, in the shadow of 6GHz Wi-Fi

EMGblog.com: Currently, Wi-Fi signals in The 2.4 and 5 GHz bands are deployed, but a new plan recently proposed by the Federal Communications Commission (FCC) seeks to expand the use of unlicensed Wi-Fi spectrum to the 6 GHz band. Doing so will free up more than 1,200 MHz of new bandwidth for Wi-Fi 6E-compatible devices, up from 500 MHz on the 5 GHz band. The 6 GHz band, with room for 7 new 160 MHz channels and not interfering with previous-generation devices, could potentially act as a multi-lane freeway for new Wi-Fi 6-equipped devices.

Prior to the FCC’s final decision, the results of an industry study showed that the development of the 6 GHz Wi-Fi band, in addition to its many benefits, has the potential to increase over the next 5 years. Generate more than 180 billion dollars in revenue for the United States. The results of this research on Monday, April 13, 2020 (April 25, 2019) by WifiForward industrial group Published; The group that world-class companies – such as Google, Microsoft, Comcast, Charter, Broadcom, Eris and… – They are members of it. This report was prepared by Dr. Raul Katz, director of business strategy research at the Columbia Telecommunication Information Institute and president of Telecom Advisory Services. According to this research, if the FCC’s plan for the development of 6 GHz Wi-Fi is implemented, it will lead to many achievements, the most important of which are:

– Add $106 billion to U.S. GDP by 2025, due to increased broadband speeds, accelerating IoT implementation, and greater access to virtual and augmented reality functions.

– Producer surplus worth $69 billion as a result of savings in enterprise wireless traffic and sales of Wi-Fi and virtual/augmented reality equipment.

– Consumer surplus equal to 8 billion dollars resulting from the increase in broadband speed.

Taking all of the above into account, a total of $183.44 billion will be injected into the US economy by 2025.

More speeds

According to the WifiForward report, the average fixed download speed in the US broadband network was 137 Mbps until February of this year, and according to forecasts, this figure is expected to reach 280 Mbps by 2022. seconds (more than 2 times) to reach. This speed is higher than the average speed of dual-band routers in the 2.4 and 5 GHz bands (that is, 267 Mbps). In the coming years, a normal router will not be able to make maximum use of high-speed networks, and therefore the speed of 267 Mbps in the future can lead to slow data flow in the network.

In addition to opening up the 6 GHz band for free Wi-Fi use, the FCC also plans to free up the lower 45 MHz frequency that sits at the bottom of the 5.9 GHz band. This seemingly small change could create the first widely available 160 MHz channel in the US. Doing so will cover the slower data flow by increasing the router’s average transfer capacity to 468 Mbps. As a result of this, about 23 billion dollars will be added to the US GDP by 2025, and in the same period of time, 5 billion dollars will be added to the consumer surplus.

According to Raoul Katz, opening up 1,200 MHz in the 6 GHz band would bring a five-year economic value of $83 billion to the US GDP. Also, as a result of this, 68 billion dollars and 3 billion dollars will be added to producer surplus and consumer surplus during this 5-year period, respectively. If these figures are added to the revenues from the 5.9 GHz band, the total will contribute $183.44 billion to the US economy by 2025.
According to Raoul Katz in a recent report, when the 5.9 GHz and 6 GHz bands are opened and added to the currently free 2.4 GHz and 5 GHz bands, the resulting spectrum can be eight channels. It supports 160 MHz or 3 channels of 320 MHz. This will also bring good economic benefits, because Wi-Fi 6 and next-generation technologies will require high Wi-Fi traffic.

A treasure called the Internet of Things?

The FCC’s plan for the 6 GHz band frees up the band for low power indoor connections (LPI) and very low power connections (VLP) in addition to standard Wi-Fi connections. LPI and VLP connectors are essential for machine-to-machine communications; Communications that can play a central role as the evolution of the Internet of Things continues.

According to industry stakeholders, LPI and VLP devices not only have a low risk of harmful interference, but their economic benefits are also high. In fact, a wide range of stakeholders – including broadband service providers and technology companies – believe that the economic value of the 6 GHz band will be negligible if LPI and VLP devices are not widely deployed. According to Katz, the increased capacity of the LPI spectrum for machine-to-machine communications — which is expected to increase to 214 million devices by 2025 — will enable more widespread deployment of IoT devices. It is estimated that these devices will add up to 44 billion dollars to the US GDP over the next 5 years.

According to what is stated in the recent report, the ubiquitous and high-throughput wireless connection in the indoor access points in the business environment – such as industrial plants, institutional complexes, etc. – has the potential to save Telecom spending is expected to account for $54.04 billion in producer surplus between 2020 and 2025.

Katz believes that making room for VLP connections in the 6 GHz band will lead to the creation of a new generation of augmented reality and virtual reality applications. As a result, it is estimated that US companies will earn up to 14 billion dollars over the next 5 years by selling hardware, software and related content. The impact of this in the US gross domestic product is estimated at 26 billion dollars.

A boon for 5G

Cellular networks will also benefit from the FCC’s new plan, according to Katz. The reason for this is quite clear. At the same time as data traffic increases rapidly, Wi-Fi networks can bear more load. This means that cellular service providers should be able to lower their investments and operating costs than they would have planned without the FCC’s action.

In the absence of additional free spectrum bands, service providers have no choice but to expand expensive infrastructure to meet traffic growth. The additional bandwidth that the FCC plans to allocate will count directly into these efforts. Apparently, this privilege will be applicable only for a part of the network implementation in the suburbs (about 15%) and rural areas (about 5%). With this, 13.60 billion dollars will be saved, which can be used for the development of 5G in rural areas.

The final vote

According to the plan, the voting to approve or disapprove this plan will begin on April 23 (May 4) at the FCC. Given the bipartisan support for this plan (led by Ajit Pai, the chairman of the FCC board), it seems likely that this plan will be approved, which will give the Wi-Fi industry a new lease of life. The Wi-Fi Alliance had previously designated Wi-Fi 6E for new devices to take full advantage of the 6 GHz band. New chipsets for access points and mobile devices are equipped to handle exactly this task. These chipsets are used in the manufacture of products that will be launched on the market by the end of this year.

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