The Economic Value of Unlicensed Spectrum
21 September 2009Microsoft commissioned Rich Thanki of Perspective Associates, part of the Ingenious Consulting Network, to estimate the current and potential economic benefits of unlicensed - or licence-exempt - spectrum. The report provides quantification of the growing popularity of unlicensed applications, the value of some existing unlicensed applications, and the potential value in the so-called 'white spaces'. It also speaks more broadly to the innovative potential of the unlicensed approach. The report suggests that shipments of devices using unlicensed spectrum will surge over the next 5 years. By 2014, it finds that hybrid devices using both unlicensed and licensed spectrum could be outselling devices relying solely on licensed spectrum, including televisions, radios and some cellular phones. Sales of both could be overtaken substantially by sales of device using only unlicensed connectivity.
The report establishes a minimum value of unlicensed by analysing three existing applications: Wi-Fi in homes, Wi-Fi in hospitals, and RFID in clothing retail outlets in the US. Conservative estimates put the existing economic value being delivered by Wi-Fi in American homes at $4.3 - 12.6 billion a year. In combination these three uses could generate an economic value of $16 - 37 billion a year over the coming 15 years. The modelled uses only account for 15% of the total projected market for unlicensed chipsets in 2014, and therefore significantly underestimates the total value being generated by unlicensed usage over this time period. The paper also estimates the economic value that might be generated from existing Wi-Fi applications improved through using the white spaces as $3.9 -7.3 billion a year over the next 15 years.
The full report can be read by clicking on the pdf below.
For further information please contact:
Rich Thanki
Consultant
Perspective
15 Golden Square
London
W1F 9JG
DD: +44 (0)20 7319 4263
S: +44 (0)20 7319 4000
M: +44 (0)7876 442 350
www.perspectiveassociates.co.uk
Part of the Ingenious Consulting Network