The ongoing improvement of 5G performance in the United States is closely tied to the increasing availability of mid-band spectrum. In March 2024, T-Mobile began utilizing additional 2.5 GHz spectrum acquired in a 2022 auction, significantly boosting its 5G network capacity, particularly in rural areas. This led to a notable increase in median download speeds, with T-Mobile recording a 29.64 Mbps rise within a single month. The company’s recent acquisition of wireless operations and spectrum holdings from UScellular is expected to further solidify its competitive edge.
Verizon and AT&T have also benefited from early access to C-band spectrum following Auction 107 in 2021 and additional 3.45 GHz licenses obtained by AT&T through Auction 110. All three major carriers have been upgrading their infrastructure to support these new frequencies, reflecting in the latest Speedtest Intelligence® data.
Key Takeaways from Recent Trends
1. Importance of Mid-Band Spectrum for 5G: The correlation between mid-band spectrum availability, improved 5G performance, and consumer sentiment is evident. The Speedtest Intelligence data underscores the positive impact of additional mid-band spectrum on 5G networks, highlighting the necessity for regulators to allocate more spectrum for cellular use.
2. T-Mobile’s Lead in 5G Performance: T-Mobile has consistently leveraged its spectrum assets to maintain its lead, recording a median 5G download speed of 287.14 Mbps as of March 2024. Innovations like 5G Standalone (SA) architecture and six-carrier aggregation are part of its strategy to stay ahead.
3. Regional Disparities Narrowing: Mid-band spectrum deployments are beginning to reduce the performance gap between urban and rural areas. States with previously lower performance, such as West Virginia and Wyoming, have seen significant improvements.
4. Upload and Latency Performance: While download speeds have surged, improvements in upload speeds and latency have lagged. T-Mobile has shown some progress in reducing latency, which is crucial for latency-sensitive applications.
Driving Quality of Experience and Consumer Sentiment
Improved 5G performance has positively impacted consumer sentiment, measured by net promoter score (NPS). The deployment of additional mid-band spectrum has enhanced the user experience for activities like video streaming and mobile gaming, reflected in better 5G Game Score™ and 5G Video Score™ metrics.
International Standing and Coverage Expansion
The U.S. has moved up the ranks in the Speedtest Global Index, now positioned 11th as of February 2024. The increased availability of mid-band spectrum has been instrumental in this improvement. Nationally, 5G Service coverage has grown from 68.4% to 76.7%, ensuring a high level of 5G Availability for users.
Closing the Performance Gap Between States
Although national median speeds are improving, disparities remain at the state level. Midwestern states like Illinois and Kansas lead in performance, while states with higher rural populations lag behind. However, recent spectrum deployments are beginning to address these gaps, with T-Mobile showing significant speed increases in several underperforming states.
Focus on Download Throughput
Providers have prioritized enhancing download speeds, with median upload speeds and latency remaining relatively static. T-Mobile has made some gains in reducing latency, which will be critical for future competitiveness in latency-sensitive applications.
Future Competitive Landscape
The continued deployment of mid-band spectrum, combined with T-Mobile’s strategic acquisitions and the potential influence of DISH, sets the stage for heightened competition among U.S. service providers in 2024. Monitoring these trends will be essential to understanding their impact on 5G performance and user experience.
In summary, the enhanced availability of mid-band spectrum is driving substantial improvements in 5G performance across the U.S., benefiting all major carriers and their customers. This trend highlights the importance of strategic spectrum allocation to support the ongoing evolution of 5G networks.