D.C. Memo: Phoenix Center Bombshell – 5G Had 'No Measurable Economic Impact'
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5G: The Phoenix Center yesterday released a paper with a startling conclusion: Wireless 5G has been a bust. Say what? “Despite the industry’s sweeping promises, the data show no measurable economic impact from 5G so far,” said Phoenix Center Chief Economist Dr. George S. Ford, the study’s author. “All regression coefficients are small and statistically indistinguishable from zero across every economic outcome measured – employment, wages, business establishments, personal income, and GDP.” Ford’s paper comes just days after the House passed a massive budget bill that projects to raise $88 billion from the FCC auction of 600 megahertz of spectrum for 5G and higher wireless services over the next 10 years. In the Senate, Senate Commerce Committee Chairman Ted Cruz (R-Texas) has sponsored legislation calling for 5G spectrum auctions substantially larger than what’s in the House bill. And FCC Chairman Brendan Carr has been vocal about the vast economic and political benefits that accrue from investing in 5G by dint of spectrum auctions. “Freeing up these airwaves in the “The One, Big, Beautiful Bill,” as @POTUS [President Trump] calls for, will generate many billions of dollars for federal priorities, drive down prices for consumers, and secure America’s global leadership. It is one of the most important steps Congress can take,” Carr said May 20 on his X feed. Ford’s study did not suggest 5G was devoid of any value. He said he was questioning “industry narratives positioning 5G as a fundamental economic game-changer, particularly as the industry begins promoting 6G technology and seeking additional spectrum allocations.” Ford indicated he was aware his paper was dropping during a major political battle in which companies like Comcast and Charter were trying to get Congress to see the benefits of promoting spectrum sharing models like the Citizens Broadband Radio Service band. “As the industry begins to promote 6G and lobby for additional spectrum, policymakers should approach industry claims about economic transformation with appropriate skepticism,” Dr. Ford said. “Policy decisions should be rooted in realistic assessments of relevant marginal costs and benefits rather than industry marketing campaigns.” A CTIA spokesperson did not respond to an email seeking comment. ◾
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