The impact of spectrum set-asides on private and public mobile networks

Seeking to accelerate digitalisation of enterprises, some regulators have started relying on radio spectrum set-asides for enterprises. Set-asides reserve radio bandwidth for potential use by enterprises in specific locations. This study empirically examines the impact of spectrum set-asides on the adoption of mobile connectivity technologies by enterprises, and the impact of setting spectrum aside on the public network quality. We find no evidence that set-asides have accelerated adoption of private networks or more broadly defined digitalisation of enterprises as measured by the number of licenced IoT connections. However, use of radio spectrum set-asides presents a trade-off, as it diminishes spectrum availability for public networks, potentially affecting download speeds and overall service quality. We find that 100 MHz of additional spectrum nationally was linked to 4.5 Mbps greater download speeds (a 24 % increase). These findings underscore the need for cautious policy approaches and consideration of alternative spectrum access frameworks.