In this digital age, Wi-Fi is critical to global connectivity, powering everything from the vast majority of Americans’ mobile phone use to home networks to enterprise applications. The Federal Communications Commission’s (FCC) unanimous decision in 2020 to allocate 1,200 MHz of 6 GHz spectrum for unlicensed use has been a monumental and unmitigated success for consumer connectivity and industrial innovation.
- In just two years (2023-2024), the 6 GHz decision has already generated $870 billion in economic value — a number expected to increase to a total of $1.2 trillion by 2027.
- The additional $1.2 trillion in value generated by the 6 GHz band builds on top of Wi-Fi’s already soaring economic engine, which delivered an estimated $1.6 trillion in value in 2024, projected to grow to $2.4 trillion annually by 2027 – that’s 50% growth (10% compound annual growth rate) delivered in just three years.
Wi-Fi’s significant economic contributions make sense, given up to 88% of total screen-on time happens over a Wi-Fi connection — even on mobile phones! In fact, Wi-Fi carries up to 90% of mobile phone data. Wi-Fi is also home to countless technologies and innovations. As FCC Chairman (then Commissioner) Brendan Carr said in 2023, the FCC’s 6 GHz decision “ensured that Americans and the businesses that are based here on our shores would benefit from this country’s first-mover advantage,” and already had allowed consumers to “benefit from better, faster Wi-Fi and 5G services in their homes.” But the success can’t (and won’t) stop here. The demand and growth we can expect from Wi-Fi is just getting going and policymakers need to make available more unlicensed spectrum in order to accommodate Wi-Fi’s tremendous demand and growth for years to come.
The success of 6 GHz Wi-Fi for consumer connectivity
The FCC’s forward-thinking decision to make the entire 6 GHz band available for unlicensed use was a game-changer. By unlocking this spectrum, the FCC unlocked trillions of additional economic value, and placed the U.S. ahead of the rest of the world in Wi-Fi innovation, access and connectivity.
- Enhanced User Experience:
- Powered by the 6 GHz band, Wi-Fi 7 and Wi-Fi 6E deliver significantly higher speeds, lower latency and increased capacity compared to the previous generation, Wi-Fi 6.
- Consumers now have access to seamless video streaming, ultra-low-latency gaming and reliable connections for work-from-home setups.
- Enhanced Connectivity:
- The 6 GHz band allows Wi-Fi to establish wider channels (up to 320 megahertz), which enables high-bandwidth applications such as AR/VR, 8K streaming and AI-based applications.
- Rapid Adoption and Innovation:
- Manufacturers quickly introduced Wi-Fi 6E and Wi-Fi7 devices to leverage the 6 GHz spectrum, highlighting the industry’s ability to quickly adapt to and benefit from new spectrum resources.
- Tens of millions of Wi-Fi 6E access points and consumer devices are already deployed, showcasing the real market demand and economic impact of the FCC’s decision.
Challenging the “need for balance” narrative
Regulators in many countries, while exploring the 6 GHz model we have adopted in the U.S., argue that allocations between unlicensed spectrum for Wi-Fi and exclusive licensed cellular spectrum should be mathematically equal. But this false choice overlooks critical realities. Despite the technology being used by consumers only 10-20% of the time, high-power licensed cellular networks already have exclusive access to thousands of megahertz of spectrum, spread across low-band, mid-band and millimeter spectrum globally, while Wi-Fi—a technological workhorse essential for affordable and accessible connectivity—shares its unlicensed spectrum with incumbents. Unlike cellular, Wi-Fi successfully coexists with incumbent users of the 6 GHz band, such as fixed microwave links and fixed satellite, thanks to its unique sharing characteristics and technologies like automated frequency coordination. A simplistic megahertz to megahertz comparison between exclusively licensed spectrum and unlicensed spectrum doesn’t reflect the realities of spectrum use and efficiency; in short, it just doesn’t compute.
Moreover, the notion of “balance” must be in relation to the varying demand patterns. While the cellular industry is projecting potential applications under IMT-2030 specifications for 6G, Wi-Fi is already addressing diverse and growing connectivity needs for consumers and enterprises alike. This highlights the importance of prioritizing spectrum use that meets both current and evolving demands, while also allowing room for future innovations through unlicensed models. After all, people spend 90% of their time indoors, consuming internet content via Wi-Fi. Wireless carriers depend on Wi-Fi to manage capacity on their cellular networks. Today, 80-90% of data traffic on mobile phones goes over Wi-Fi. The current market activity in Wi-Fi-enabled devices far outpaces any proposed cellular applications in the 6 GHz band, making it clear that unlicensed spectrum allocation is addressing real and immediate connectivity demands of American consumers.
Innovation through unlicensed spectrum
The FCC’s allocation of the full 1,200 megahertz for unlicensed use has unleashed unprecedented opportunities for innovation. Through wider 320 megahertz channels, Wi-Fi 7 and future generations will enable massive innovation and advances.
- AI-Driven Applications: Faster search results and edge computing capabilities for AI virtual assistants, enhancing productivity and economic growth. Wi-Fi’s unique ability to support these applications in dense environments makes it critical for advancing AI leadership globally.
- Smart Cities and IoT: Scalable and high-capacity networks for connected devices, transforming industries and urban infrastructure. These innovations are a direct response to market demand, unlike speculative IMT-2030 use cases.
- Economic Creativity: Wi-Fi’s unlicensed model has been a key driver of U.S. economic growth since 2020, enabling innovation across countless sectors. The dramatic difference in economic growth between the U.S. and regions like Europe highlights the benefits of prioritizing unlicensed spectrum.
Countries that follow the U.S. example and prioritize unlicensed spectrum in the 6 GHz and the 7 GHz bands will position themselves as global leaders in technology investment and innovation. A recent economic study, focused on the U.S., projects that allowing unlicensed Wi-Fi to share the 7 GHz band, with existing mission-critical federal operators, will generate nearly $80 billion in cumulative economic value by 2027, with significant increases over time. By contrast, allocating more spectrum to licensed cellular networks risks squandering opportunities for affordable, widely accessible connectivity and groundbreaking applications. The tempered success of 5G networks and reports of underused 5G spectrum on cellular networks is an important warning about the risks of going down the legacy, exclusive high powered spectrum path in the future.
The path forward and global implications
As recent studies make clear, the proliferation of Wi-Fi devices and the astounding growth in demand for Wi-Fi necessitate that policymakers pave the way for additional unlicensed spectrum that goes well beyond the spectrum in the 6 GHz band. Fortunately, the success of the 6 GHz band provides a roadmap for the 7 GHz band, currently used primarily by Federal agencies. Allocation of additional 320 megahertz channels is crucial to ensuring all Americans can access Wi-Fi at home, work and on the go, and create greater opportunities for innovation while maintaining protection for critical federal systems. By creating more channels, regulators would enable faster delivery of high-performance AI applications, driving economic growth and maintaining national security priorities. It’s time to set up the 7 GHz band for unlicensed spectrum and ensure that Wi-Fi will be equipped to handle the demands of American consumers and businesses for years to come.
Moreover, the FCC’s bold move to allocate the full 1,200 megahertz of the 6 GHz band has set a benchmark for regulators worldwide. Countries adopting similar strategies can expect to reap great rewards.
- Enhanced AI and Technology Leadership: Wi-Fi 7’s multiple 320 megahertz channels will facilitate advanced applications, including AI, AR/VR and edge computing, creating more competitive and innovative economies.
- Harmonized Standards: Global alignment on 6 GHz allocation can lead to interoperable technologies and economies of scale for device manufacturers.
- Broader Digital Access: Expanded unlicensed spectrum supports affordable connectivity solutions, helping to bridge the digital divide.
Conclusion
The FCC’s 6 GHz allocation for unlicensed use has unlocked unparalleled opportunities for connectivity and innovation. By embracing the unlicensed model and moving away from traditional exclusive licensing, of the last 40+ years, the U.S. has demonstrated the immense potential of spectrum sharing. Wi-Fi’s ability to coexist with incumbents, combined with its role as a catalyst for economic and technological growth, underscores the need for forward-thinking spectrum policies worldwide.
As other nations consider their approach to allocating the 6 GHz band, the U.S. experience serves as a compelling example of how unlicensed spectrum can deliver transformative benefits for consumers, industries and economies alike. To further solidify this leadership, policymakers should look now to unlicensed use of the 7 GHz band to accommodate Wi-Fi’s surging growth and demand, thereby ensuring that this crucial technology remains at the forefront of global innovation and connectivity for decades to come.
For more on 6 GHz spectrum and other key Wi-Fi topics, make sure to attend RCR Wireless News’ first-ever Wi-Fi Forum.
