Will the new 6GHz Wi-Fi technology boost the global economy?
A new study shows that in the next five years, opening the 6GHz band to Wi-Fi will bring US$153.75 billion in revenue to the US economy.
In late April, the United States Federal Communications Commission (FederalCommunicationsCommission) passed a regulation that stipulated that the 1200 MHz spectrum in the 6 GHz frequency band can be used without permission. The release of these 6 GHz bands for Wi-Fi is the largest frequency allocation upgrade for the current agingwireless protocol in 10 years. In 2009, Wi-Fi using the 5GHz spectrum was introduced (the last major modification). The earliest 2.4GHz Wi-Fi was launched in 1997.
The Industry Paid Report (PDF) from WifiForward claims that it will create billions of dollars, largely due to the accelerated deployment of the Internet of Things. WifiForward is a group of companies, organizations, and public sector organizations that support Wi-Fi; Google, Microsoft, and Hewlett Packard Enterprise are all members.
The new technology that supports 6GHz is marked as Wi-Fi6E, with an extension of "E" (unlike the current Wi-Fi6 brand, which is only a Wi-Fi iteration, regardless of frequency of use). Wi-Fi6E utilizes the free user spectrum of 1,200 MHz in the 6GHz band between 5.925GHz and 7.125GHz. This is higher, wider, and faster in spectrum than existing Wi-Fi: FCC stated in a press release (PDF): "Wi-Fi6 will be 2.5 times faster than the current standard. Provide better performance for American consumers." "Opening the 6GHz band to unauthorized users will also increase the available spectrum of Wi-Fi by nearly five times."
The entire 1200 MHz will be allocated to indoor low-power devices, such as those heavily used in M2M and IoT. Standard power devices (such as those used for media consumption) will be limited to 850 MHz in the 6GHz band. The US$153.75 billion figure from WifiForward is divided into three areas: US gross domestic product (GDP) increased by US$83.06 billion; producer surplus of US$67.78 billion; and consumers of US$2.92 billion Remaining. The economy is expected to grow in the next five years.
Producer surplus is an economic term related to the difference between the price received and the price at which the seller is willing to sell the product. Consumer surplus is related to the difference between the price actually paid by the user and the price that can be paid. In other words, the report hopes that people and businesses are willing to pay more for higher speeds. For example, equipment sales will benefit from increased broadband speeds.
One of the most interesting findings in the report is the contribution of enhanced free IoT capabilities to GDP: According to WifiForward, about half of the USD 83 billion (USD 44.03 billion) in GDP growth will come from a wider range of IoT devices deploy.
Other line items for WifiForward’s top-level computing include 5G offload, saving money for authorized 5G source traffic by using additional Wi-Fi bandwidth. In addition, the demand for augmented reality and virtual reality devices is expected to surge due to providing more unlicensed bandwidth; bottlenecks may eventually disappear, and technology genres may eventually start.
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