Spectrum is a hot commodity for telcos, and operators are currently spending big at auctions as they compete to increase their 5G footprint. In 2021 alone, US operators generated over $100 billion in proceeds for the Federal Communications Commission (FCC) from spectrum auctions. Gaining spectrum and using it efficiently is necessary for telcos to deliver reliable connectivity and support the huge demand for data and the growing number of devices across their networks.
However, there is only a limited amount of spectrum available, and with new spectrum costing a considerable amount, ensuring that it is used effectively is an important consideration. So, what can operators do to ensure they are optimising their spectrum assets and guarantee they are generating a return on investment from auctions?
2021: the year of mid-band
Mid-band spectrum (1-6GHz), due to its propagation, offers the optimum combination of speed, coverage and capacity for 5G, for both outdoor and indoor environments.It is therefore considered ideal for next-generation 5G networks and is being used for the majority of 5G deployments across the globe today.
It’s no surprise that the first major sell-off of mid-band spectrum in the US in the 5G era, Auction 107 (3.7-3.98 GHz band), raised a staggering $81.2 billion – the world’s costliest spectrum auction. Verizon was the highest bidder at the auction, spending $45.45 billion, while AT&T and T-Mobile spent $23.4 billion and $9.3 billion respectively.
The FCC’s most recent mid-band auction, Auction 110, offered 100MHz of 3.45GHz to 3.55GHz spectrum for commercial use across the US and concluded in late November. AT&T, Dish Network, T-Mobile, and Verizon were among the major bidders at the auction, with AT&T predicted to be the biggest spender. It was the third-largest spectrum auction in FCC history and surpassed $21 billion, which was much more than analysts had predicted. These spectrum bands are ideal for carriers as they plan dense network deployments, for venues like stadiums, airports, and shopping malls.
Financial analysts report that throughout 2021, AT&T alone may end up spending up to $36.7 billion on mid-band spectrum licences. 2021 was indeed a successful year for the FCC. But what the operators do next with this spectrum is crucial.
How can software help maximise spectrum assets?
For mobile operators to generate a return on their huge spectrum investments, new and old, they need to maximise their spectrum assets. Enhancing spectral efficiency through software is a way to do this.
Mobile operators now have the option to extend the life of their 4G spectrum assets, whilst also optimising their use of valuable new 5G spectrum. This can be achieved by using Spectrum Multiplier software, which is emerging as a powerful tool for the wireless industry because it can help operators boost cell capacity across their mobile networks.
This technology uses Delay Doppler channel detection methods that, when combined with MU-MIMO, means that mobile networks can communicate with multiple users simultaneously using the same time and frequency resources. This can optimise spectral efficiency, and deliver up to two times performance improvements on existing networks. Furthermore, this software can operate in both FDD and TDD spectrum without hardware upgrades to cell towers, or any updates to handsets.
The software can be integrated into a traditional RAN infrastructure, alongside the equipment of the major network equipment manufacturers. It can also be deployed as an xApp in an OpenRAN set-up or in a telco cloud. This means that this software can be used across any kind of network build.
Doing more with existing assets
Spectrum Multiplier software can effectively double network capacity and the capabilities of existing spectrum, supporting twice as many users and devices. This subsequently opens up the opportunity for operators to generate huge amounts of additional revenue from new consumers and businesses using the same infrastructure. It can also improve the performance of 4G and 5G services, delivering more reliable and low latency connectivity. This means that networks can support next-generation applications for consumers (such as the metaverse) and businesses (industrial IoT), without expensive hardware upgrades.
By doubling the capacity of their existing spectrum, operators can now save huge amounts of Opex and Capex. They can use these savings to continue to invest in extending their 5G and 4G networks to new areas, and connecting the under-connected.
Mid-band auctions highlight the importance of obtaining 5G spectrum assets for telcos. Acquiring new spectrum is not only a huge expense, but the market is competitive - as demonstrated by recent high-bidding auctions. As operators eagerly vie for the most mid-band spectrum to help increase their 5G footprint, improved spectral efficiency with software may just be the solution they need. This is an exciting time of innovation in the telecoms industry.
