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 all-IP networks and relying entirely on packet-switching. 4G networks enhanced the quality of video data due to larger bandwidths allowing for increased network speed. The introduction of the LTE network has since set the standard for high-speed wireless communications on mobile devices and data terminals. LTE is in constant evolution, and is currently on release number 12. “LTE advanced” can support ~300 Mbps.

5G: 5G’s precise capabilities and extent of adoption are still to be determined. The speed, volume, and latency of data transfer will depend on the spectrum bands used, as well as the context of network usage (fixed or mobile). For example, a mmWave 5G network could enable incredibly fast speed for fixed local area networks under specific conditions that did not limit wave propagation, but would conversely struggle to maintain those speeds at extended range (on the “cell edge”). A sub-6 5G network might have lower maximum speed than mmWave, but could cover a much broader area without risk of interruption from a range of environmental factors. These conditions will ultimately determine the “standards” for 5G, and are currently in development globally.

History’s Lessons: First-Mover Advantage in Generation Transitions

Transitions between wireless technology generations before 5G also had substantial commercial, competitive, and security implications for first-movers. Europe, led by Germany, gained first competitive advantage in 2G, and as a result companies like Nokia and Ericsson were able to roll out more advanced devices earlier and were already transitioning to 3G in the 2000s when the United States was still trying to implement 2G. The European wireless tech industry boomed during this period while U.S. companies struggled to keep pace. Europe lost this edge during the 3G transition, when they were hampered by regulations that required time-consuming auctions of 3G spectrum, rather than simply repurposing existing 2G spectrum bandwidth. Japan took the lead on 3G, and while the United States ultimately caught up to Japan, it took years to roll out 3G networks, which came at a huge cost to U.S. businesses as Japan sprinted forward with its 3G business model. The United States lost thousands of jobs and considerable revenue during this transition, during which multiple wireless technology companies failed or were absorbed into foreign companies.

The United States learned from its previous mistakes when it came to 4G and 4G LTE. Although it had been slow to implement 3G, there was a surge in 3G investment in the later years that ultimately gave the United States a head start when 4G arrived. Additionally, the FCC opened licenses for more bandwidth and set regulations to promote rapid expansion of the 4G network as it was being developed. Japan kept pace at first, but Japanese industry failed move quickly to develop the technology that would ultimately shape the 4G ecosystem. As a result, the United States took an early lead in the smart device market and ultimately displaced Japanese operating systems both in and out of Japan.

In the early 2010s, AT&T and Verizon rapidly deployed LTE across the United States in the 700 MHz spectrum they won at auction in 2008. The United States became the first country (after Finland) to see a comprehensive LTE network that delivered approximately 10x the consumer network performance of existing 3G networks. This step-change in performance drove rapid DIB 5G Study