Problem with 5G Spectrum Costs Carriers a Whopping $81 Billion to Fix
(Photo : Screenshot From Pexels Official Website) Problem with 5G Spectrum Costs Carriers a Whopping $81 Billion to Fix

The excitement circulating around the new 5G technology that promises really fast download speeds and massive data capacity has been getting higher and higher ever since the release of the first-ever 5G-enabled iPhone was released sometime last fall.


However, the actual experience of the 5G still doesn't live up to the hype as of the moment due to one huge issue. 

5G wireless network

According to the story by CNN, the reason why 5G is still underperforming is due to the major lack of available infrastructure known as "spectrum."

This is reportedly needed to build the 5G wireless networks that are both faster as well as widely accessible than 4G.

Everything changed with the new completion of the official Federal Communications Commission (FCC) latest spectrum auction that happened last month. According to the FCC posting, carriers reportedly had to shell out a collective amount of $81 billion in order for them to get a hold of this particularly crucial resource.

Craig Moffett, the founding partner as well as an analyst over at MoffettNathanson, noted that spectrum is the lifeblood of the entire network.

High-speed 5G spectrum

It was also noted that part of the whole reason that they did not have a 5G network that the consumers have been waiting for is due to them still not having access to the right spectrum to make it possible.


To be able to accommodate enormous levels of traffic that the upcoming high-speed 5G networks are expected to transmit, wireless companies reportedly need to buy highways for the supposed data for them to travel on.


Spectrum is now like the real estate that the US government is auctioning off for those carriers to build those particular highways. However, this is still better than just property, and the more lanes that can be made, the significantly faster the 5G networks will become. 

Read Also: 'Confidential' Document Shows Diagram of 5G Chip Within COVID-19 Vaccine, But Truth is Far From It

Carriers auction

Just last week, T-Mobile, Verizon, and even AT&T had all held events to update analysts and investors regarding the auction results. They even reportedly laid out some plans for them to expand their whole networks.

Hans Vestberg, the CEO and Chairman of Verizon, reportedly said that it is a great day for Verizon and that they would even go so far as to note that this is actually one of the most significant days in their whole 20-year history.

There is also "no question" that the new carriers' spectrum holdings will reportedly improve the consumers' experience of being able to use 5G, according to Moffett.

Carriers, however, still expect it to take a number of years before the whole spectrum can be utilized.

As of the moment, Moffett noted that there is no question as to whether or not the spectrum holdings will be beneficial. However, it is still expected to take a couple of years to roll out. According to an article by CNet, Verizon came out with $45 billion, AT&T with $23 billion, and T-Mobile with $9 billion.

Related Article: 5G Conspiracy Theory Finally Explained: Find Out How it Started and How to Stop False Information

This article is owned by Tech Times

Written by Urian Buenconsejo

ⓒ 2024 TECHTIMES.com All rights reserved. Do not reproduce without permission.
Join the Discussion