{"id":1268,"date":"2020-02-19T11:50:16","date_gmt":"2020-02-19T07:50:16","guid":{"rendered":"https:\/\/www.techxmedia.com\/?p=1268"},"modified":"2025-04-18T15:40:23","modified_gmt":"2025-04-18T11:40:23","slug":"spectrum-major-catalyst-economy-bcg","status":"publish","type":"post","link":"https:\/\/techxmedia.com\/en\/spectrum-major-catalyst-economy-bcg\/","title":{"rendered":"Spectrum to become a major catalyst for ME\u2019s economy, BCG"},"content":{"rendered":"\n

New research by Boston Consulting Group (BCG)<\/a> highlights that\nspectrum\nenables 3.4% of GDP for the top 20 ICT nations from a range of sources,\nincluding employment, non-oil revenue, technological adoption, and investment deployment.<\/p>\n\n\n\n

The electromagnetic spectrum is the\nrange of frequencies from 3 kilohertz (kHz) to 300 gigahertz (GHz) that carries\nradio signals that enable wireless connectivity. <\/p>\n\n\n\n

\u201cAs the demand for connectivity increases, the additional spectrum will become a prerequisite for meeting these needs in the new digital economy.<\/a> Electromagnetic spectrum plays a key role in this context, as an enabler of future innovation,\u201d said David Panhans, Managing Director and Partner at BCG. <\/p>\n\n\n\n

The future possibilities for spectrum are significant\nwith the emergence of new use cases and innovation, particularly in the Middle\nEast, where technological adoption and economic diversification are high on the\nagenda for many nations. For example, Internet of Things (IoT) networks are\npowering Industry 4.0; unmanned aerial vehicles (UAV) are changing the face of\nlogistics; private 5G networks are changing the dynamics of the telecom\nindustry, to name a few.<\/p>\n\n\n\n

\"\"
Thibault Werle, Managing Director & Partner BCG<\/figcaption><\/figure><\/div>\n\n\n\n

\u201cThere are\nsignificant economic benefits of facilitating access to spectrum. In addition\nto enabling larger capacity and higher download speeds than in existing\nnetworks, it helps network operators to meet growing traffic demand and secure\ngood user experience,\u201d said Thibault Werle, Managing Director, and Partner at\nBCG.<\/p>\n\n\n\n

Spectrum Management is a Matter of\nNational Interest <\/strong><\/strong><\/p>\n\n\n\n

Increasing global demand presents a challenge for spectrum\nscarcity. However, traditional ways of allocating spectrum\nhave created multiple challenges to be addressed. <\/p>\n\n\n\n

BCG\u2019s report identifies three key\nareas for further review:<\/p>\n\n\n\n

  1. Acting on the Competing Demand by\nIdentifying and Managing Tradeoffs: <\/strong><\/li><\/ol>\n\n\n\n

    Competing demands from various users and sectors\nfor similar spectrum bands highlight the imperative to understand the\noverlapping and conflicting needs users. Suboptimal allocations may increase\nthe risk of interference, making it difficult for users to share the same\nbands, limit the benefits of economies of scale, and delay the adoption of new\nand emerging technologies, negatively affecting various economic sectors. In\nresolving such issues, countries will need a way to assess the value of each\nassignment not only to the user but also to the broader population, where there\nis a wide range of efforts that must be considered: <\/p>\n\n\n\n

    • Commercial uses<\/em><\/strong>,\nsuch as those pursued by 5G telecom networks and commercial satellite\ncompanies;<\/li>
    • Foster innovative uses<\/em><\/strong>,\npossibly by assigning unlicensed spectrum to technologies like next-generation WIFI\nor IoT networks<\/li>
    • Accommodate national civil uses<\/em><\/strong>,\nsuch as the needs of first responders, and safeguard national interests, such\nas by allocating spectrum when it is needed for security uses.<\/li><\/ul>\n\n\n\n
      • Developing the Next-Generation\nSpectrum Management Framework<\/strong><\/li><\/ul>\n\n\n\n

        Given the changing demand and supply, countries\nneed to implement a balanced spectrum strategy that requires a thorough\nunderstanding of the trends affecting spectrum, insight into the priorities of\nspectrum users and stakeholders, and knowledge of the supply. Spectrum managers\nneed to consider the following:<\/p>\n\n\n\n

        • More Sophisticated and\nMultidisciplinary Regulatory Tools<\/em><\/strong>.<\/strong>\nNew policies and streamlined procedures must fit the current demand and cater\nto future uses. The best ones will decrease overhead and free up spectrum\nmanagement resources so that they can be used for the economic, social, and\nlegal aspects of spectrum management<\/li>
        • Demand\nMapping and Forecasting<\/em><\/strong>. <\/strong>Spectrum\nplanning and allocation must take a forward-looking approach, which requires\nconducting a broad impact assessment across various dimensions, including\ntechnology, the economy, public and social services, and national interests.\nThe goal is to ensure the accessibility of spectrum for both new and existing\nusers<\/li>
        • Responsive\nAuthorization and Licensing<\/em><\/strong>. <\/strong>To\nhandle the rapidly evolving needs of the ecosystem, the models used to assign\nspectrum bands must move away from the traditional fee-for-usage authorization<\/li><\/ul>\n\n\n\n
          • Enabling a Stronger Spectrum\nEcosystem<\/strong><\/li><\/ul>\n\n\n\n

            A key set of enablers are needed to successfully transition\nspectrum managers to a more strategic role, rather than the traditional\nadministrative role. These enablers include engagement and open communication,\nmarket-oriented rules and regulations, broader skill sets, and emerging\ntechnologies:<\/p>\n\n\n\n

            • Engagement\nand Open Communication.<\/em><\/strong>\nSpectrum management today is very different, with new models for spectrum use\nand new allocation mechanisms. In such an environment, decision making requires\ncollaboration, transparency, and user buy-in<\/li>
            • Market-Oriented\nRules and Regulations. <\/em><\/strong>By\nupdating rules and procedures for the new environment, countries can give\ntheir spectrum manager the authority to apply and enforce radio frequency\nregulations and secure national agreement on its mandate. <\/li>
            • Broader\nSkill Sets. <\/em><\/strong>To\nkeep an eye on national interests, spectrum management must involve\ncross-border agreements and international coordination, for which international\nlaw or policy specialists may be required<\/li>
            • Emerging Technologies. <\/em><\/strong>New technologies make it possible\nto rethink the approaches taken by spectrum managers and the tools they use.\nImagine IoT sensors, mobile devices, connected vehicles, and other electronic devices\nforming an ad hoc network that can leverage blockchain-based databases with\ncurrent spectrum usage. Then imagine it with an AI layer that can predict\ndemand variations, optimize sharing conditions, and vary prices in real-time<\/strong><\/li><\/ul>\n\n\n\n
              \"\"
              Faisal Hamady, Principal BCG<\/figcaption><\/figure><\/div>\n\n\n\n

              \u201cCountries\nshould adopt a new, flexible, and forward-looking model before their spectrum\nis locked up by legacy contracts that make it difficult, and perhaps even\nimpossible, to accommodate innovations or essential services in a timely\nfashion. Countries that fail to respond may forego the economic benefits of\nspectrum. Reshuffling the spectrum in the future may be too costly owing to\nsunk investments in equipment and the deployment of systems\u2014or it may be too\nlate to capitalize on industries\u2019 digital transformations.\u201d said Faisal Hamady,\nPrincipal at BCG.<\/p>\n\n\n\n

              \u201c<\/strong>Given\nthe vast economic potential at stake, a new approach to management and regulation needs to accommodate\nthese new use cases. It\u2019s within all nations\u2019 best interests to effectively recalibrate\nhow the management of this finite, yet valuable resource is handled,\u201d\nconcluded R\u00fcdiger Schicht, Managing Director and Senior Partner, BCG Zurich.<\/p>\n","protected":false},"excerpt":{"rendered":"

              New research by Boston Consulting Group (BCG) highlights that spectrum enables 3.4% of GDP for the top 20 ICT nations from a range of sources, including employment, non-oil revenue, technological adoption, and investment deployment.<\/p>\n","protected":false},"author":8,"featured_media":1269,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[9639,9621,9653,9624],"tags":[432,433,434,431,77],"contributor":[],"class_list":["post-1268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech-emerging-technologies","category-emerging-technologies","category-energy-industry-news","category-smart-sectors","tag-bcg","tag-gdp","tag-ict","tag-spectrum","tag-technology"],"featured_image_src":"https:\/\/techxmedia.com\/en\/wp-content\/uploads\/2020\/02\/David-Panhans-Managing-Director-and-Partner-BCG-e1582097863403.jpg","author_info":{"display_name":"Rabab","author_link":"https:\/\/techxmedia.com\/en\/author\/rabab\/"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/posts\/1268","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/comments?post=1268"}],"version-history":[{"count":0,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/posts\/1268\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/media\/1269"}],"wp:attachment":[{"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/media?parent=1268"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/categories?post=1268"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/tags?post=1268"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/contributor?post=1268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}