Yankee Group Highlights Hidden Threat to 4G: Spectrum Fragmentation

New report released at 4G World 2010 shows that as countries fail to harmonize on a few key 4G bands, they end up stunting roaming revenue and hurting device economies of scale.

Chicago, Ill, 4G World 2010 Oct 20, 2010 - Regulators pondering how to carve out spectrum to support 4G networks are missing the forest for the trees. While focusing on finding spectrum large enough to support 4G's higher speeds and innovative applications, they are failing to harmonize their choices across geographies, resulting in worldwide spectrum fragmentation. And that means tomorrow's 4G handsets may not work from country to country, stifling user adoption and curtailing roaming--and revenue.

Those are the findings from Yankee Group's "4G Spectrum Fragmentation--Killing the Golden (Roaming) Goose?" a new report released today at 4G World 2010. The report's global spectrum survey finds:

  • Europe gets it mostly right. Europe is taking a harmonized approach to both spectrum and technology, with key new networks rolling out in Sweden, Norway and Germany all using consistent spectrum bands.
  • The U.S. goes it alone. By allowing carriers to take spectrum in advance of the rest of the world and fragmenting its 700 MHz digital dividend, the U.S. is ending up out of step with not just Mexico but also Canada.
  • Asia is slow to decide. Across the region, regulators have moved slowly to clear existing occupants from key spectrum. Plus, Japan--like the U.S.--continues to allocate spectrum with little regard for international harmonization.


"If these trends continue, vendors will not be able to make devices that work everywhere and consumers will not easily roam across networks when traveling to different countries," said Ken Rehbehn, principal analyst at Yankee Group and author of the report. "This greatly threatens 4G's success, since roaming revenue will fall and consumers will seek alternatives, like Wi-Fi."

About 4G World
4G World is the first industry conference and expo covering the entire ecosystem for next-generation networks supporting high-speed broadband and full mobility, anywhere Internet access, and mobile content, applications and transactions. 4G World showcases the first 4G mobile broadband networks and applications being launched in 2010 throughout the world. The event Web site is http://www.4gworld.com

 

About Yankee Group
Yankee Group is the preeminent research and advisory firm equipping enterprises to profit in a mobile world. The core of our content is proprietary research and analytics on the attitudes, behaviors and usage patterns of mobile users. Based on this research, we provide a range of actionable data, insights and advices to marketing, strategy and product executives driving the mobility revolution in leading companies worldwide.

Contacts: