More Spectrum = Less Investment in London

America is approaching the #1 position in 5G coverage in the West. T-Mobile is reaching 100 million pops this month with 2.5 GHz spectrum. It is on track for 200 million in 2021. Almost all important 5G builds are in mid-band, 2.5 GHz – 4.2 GHz and T-Mobile has the only large holding in the U.S.  

D.C. assumes that releasing 270 MHz more mid-band spectrum will increase investment. A provocative empirical study of Greater London suggests the opposite was true in 4G rollouts. Telcos with more spectrum built 42% fewer sites in dense urban areas. 

With more spectrum, a cell site can serve more subscribers. That means the company needs fewer cells to deliver enough capacity.  

We find that MNOs with double the bandwidth use 42% fewer eNBs on average in dense urban environment (for approximately similar market shares). This difference decreases down to 27% and 23% fewer eNBs in lower density urban and suburban areas, respectively.

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