The Positive Impact of Expanded 3GHz on the Mobile Industry and Economy

The rapid growth in mobile data demand has created an urgent need for expanded spectrum. With mobile data usage skyrocketing from 7.2 GB per smartphone per month to 25 GB per smartphone per month, the telecommunications industry must adapt to keep pace. 

Date July 12, 20244
Author Tom Besteman
Read 8 Min

The rapid growth in mobile data demand has created an urgent need for expanded spectrum. With mobile data usage skyrocketing from 7.2 GB per smartphone per month to 25 GB per smartphone per month, the telecommunications industry must adapt to keep pace. This dramatic increase is driven by the proliferation of data-intensive applications, streaming services, and the overall digital lifestyle that modern consumers have adopted. The expansion of the 3GHz spectrum is a critical step in addressing this demand, bringing significant benefits across multiple sectors, including improved connectivity, lower operational costs for operators, and enhanced user experiences (Ericsson, 2023).

The Need for Expanded 3GHz Spectrum

The explosive increase in mobile data usage underscores the necessity for additional spectrum. Mobile network operators (MNOs) must manage this surge effectively to ensure seamless connectivity and service quality. The 3GHz spectrum, known for its balance between coverage and capacity, offers an ideal solution to meet these escalating demands. By expanding this spectrum, operators can enhance network performance, reduce congestion, and support the rollout of next-generation technologies like 5G. This expansion is not just about adding more bandwidth; it's about future-proofing networks to handle the anticipated growth in data traffic and connected devices (GSMA, 2023).

 

Key Impacts of 3GHz Spectrum Expansion

Mobile Network Operators (MNOs):

Expanding the 3GHz spectrum can lead to lower infrastructure costs for MNOs. By leveraging this spectrum, operators can accommodate increased traffic more efficiently, reducing the need for extensive new infrastructure investments. This efficiency translates to better connectivity and improved service for end-users. Additionally, operators can optimize their network resources, leading to more strategic deployments and maintenance activities. These benefits contribute to a more robust and reliable network, capable of supporting the growing demands of modern users while keeping operational expenses in check, ultimately benefiting both the provider and the consumer (Ericsson, 2023).

Mobile Ecosystem:

The expansion of the 3GHz spectrum will foster growth within the mobile ecosystem. As the spectrum allows for better service and higher capacity, it will attract new subscribers and stimulate demand for mobile services. This growth can lead to additional economic value, contributing significantly to the broader economy. New business models, applications, and services can emerge, driving innovation and competition within the market. The expanded capacity also supports more startups and enterprises, enabling them to offer new solutions and services, thus creating a vibrant and dynamic mobile ecosystem that continuously evolves and expands (Statista, 2023; ITU, 2023).

Productivity:

Enhanced access to mobile broadband, particularly in urban areas, will enable consumers to perform tasks more efficiently. Whether for personal or professional purposes, reliable and fast mobile internet can boost productivity by facilitating remote work, online education, and digital transactions. This improved connectivity means that businesses can operate more smoothly, employees can be more flexible with their work environments, and students can access educational resources from anywhere. Furthermore, mobile broadband supports the development and use of smart technologies, which can automate and optimize various tasks, leading to increased productivity across multiple sectors (OECD, 2022; World Bank, 2022).

Wider Economy:

The broader economy will benefit from the expansion of the mobile ecosystem. As the 3GHz spectrum supports increased connectivity and subscriber growth, it will enhance economic trade and drive innovation. The resulting economic activities can contribute to GDP growth and create new job opportunities. Moreover, the improved connectivity can attract foreign investments, enhance global trade relations, and position countries as leaders in the digital economy. The expansion of mobile networks also supports digital inclusion, ensuring that more people can participate in the digital economy, which in turn stimulates further economic growth and development (McKinsey Global Institute, 2023; Deloitte, 2023).

 

Our Answer: LIMA IP Traffic Profiling

Group 2000's LIMA IP Traffic Profiling addresses the demands of high-bandwidth networks like fiber and 5G by filtering out non-relevant data before it is processed. This solution reduces costs across the entire lawful interception (LI) chain by excluding high-bandwidth content, such as streaming media, that carries no user data. Utilizing the latest ETSI standards, LIMA IP Filtering ensures that only pertinent data reaches the Law Enforcement Monitoring Facility (LEMF), enhancing efficiency and effectiveness.  By using IP Traffic Profiling, network operators can avoid unnecessary costs and achieve a more optimized architecture, ensuring that resources are allocated where they are most needed, and operational efficiency is maximized.

Conclusion

The expansion of the 3GHz spectrum is more than just a technical upgrade; it is a crucial enabler of economic growth and societal advancement. By accommodating the surging demand for mobile data, it helps MNOs reduce infrastructure costs, expands the mobile ecosystem, enhances productivity, and stimulates the wider economy. As mobile connectivity continues to be a cornerstone of modern life, the benefits of expanded 3GHz spectrum will be far-reaching and transformative.  As mobile connectivity continues to be a cornerstone of modern life, the benefits of expanded 3GHz spectrum will be far-reaching and transformative. For mobile network operators, policymakers, and stakeholders in the digital economy, investing in the expansion of the 3GHz spectrum represents a strategic move towards a more connected, efficient, and economically robust future. Embracing this expansion will ensure that networks can meet future demands, supporting the continuous evolution of technology and society. Additionally, utilizing IP Traffic Profiling will prevent unnecessary costs and contribute to an optimized network architecture, further enhancing the overall efficiency and effectiveness of mobile network operations (GSMA, 2023).

Tom Besteman
Marketing Manager