5G in the U.S. – Additional Mid-band Spectrum Driving Performance Gains | Ookla® (2024)

5G performance in the United States continues to improve as more mid-band spectrum becomes available. In March, T-Mobile gained access to additional 2.5 GHz spectrum it won at auction 108 in 2022, and we’re already beginning to see the impact of this, adding extra capacity to its 5G network and boosting performance in rural U.S. locations in particular. In just one month, T-Mobile’s median download performance across the U.S. increased by 29.64 Mbps. Its recent agreement to acquire the bulk of US Cellular’s wireless operations and a portion of its spectrum holdings will help it further reinforce its competitive lead. Verizon and AT&T have both benefited from the early vacation of C-band spectrum by satellite providers, the licenses for which were acquired through Auction 107 in February 2021. AT&T acquired additional 3.45 GHz licenses, former U.S. Department of Defense spectrum, made available through Auction 110 which concluded in January 2022. All three major carriers have since been upgrading their sites to support their new spectrum frequencies. This update reviews the latest Speedtest Intelligence® data to highlight the impact of deployments in new spectrum bands for U.S. 5G users.

Key takeaways

• Recent trends highlight the importance of additional mid-band spectrum for 5G. Speedtest Intelligence data shows a clear correlation between the release of additional mid-band spectrum, 5G performance, and consumer sentiment for 5G networks, with all three national wireless providers benefitting over the past 6 months. This sends a clear message to the FCC and other regulators, of the benefits of allocating additional spectrum for cellular use, as advocated for by industry bodies such as the CTIA, CCA and GSMA.
• T-Mobile intent on holding its lead. While C-band spectrum allowed Verizon in particular to play catch-up during Q4 2023, T-Mobile has continued to build on its performance advantage and innovate, moving to a 5G Standalone (SA) architecture, testing six carrier aggregation, while also benefiting from deploying in additional mid-band spectrum starting in March. T-Mobile recorded a median 5G download speed of 287.14 Mbps as of March 2024, an increase of 29.64 Mbps in a single month, which helped it extend its lead over Verizon, which recorded 224.67 Mbps, and AT&T with 145.36 Mbps. Additional spectral capacity will also help fuel further growth of 5G Fixed-Wireless Access (FWA) services, as wireless operators have had to be selective in signing up new fixed customers in order to manage capacity.
• Additional mid-band spectrum helping close the gap on regional disparities within the U.S. While the U.S. ranks highly on 5G performance, 5G Service, and 5G Availability metrics versus other leading 5G markets globally, there have remained wide disparities in 5G performance between U.S. states, and between urban and rural locations. Recent mid-band spectrum deployments are starting to shift the needle for a number of states and rural communities.
• 5G upload and latency performance need more attention. To date, capacity gains from additional spectrum are being directed almost universally to boost 5G download performance, in part because 5G-NR TDD radios are being used in both 2.5 GHz and 3.5 GHz bands. While latency remains relatively static, we do see a consistent improvement from T-Mobile, a trend which will be important if the carrier is to differentiate itself on latency-critical applications in the future.

T-Mobile continues to maintain its national lead on 5G performance

Speedtest Intelligence data for the U.S., covering the last three years, clearly shows how instrumental additional mid-band spectrum has been for all major US carriers. Four points in time stand out very clearly when we look at median download speeds across the market:

• T-Mobile’s deployment of 5G in both 600 MHz and 2.5 GHz spectrum during 2021 (acquired through the merger with Sprint), giving it a significant early advantage, as AT&T and Verizon focussed more heavily on mmWave spectrum.
• Verizon performance picked up in January 2022, after it began C-band deployments, which had been delayed due to concerns of interference at airports from the FAA.
• The early vacation of the remaining C-band spectrum by incumbent satellite operators in August 2023, giving AT&T and Verizon full access to the spectrum frequencies they acquired at auction in 2021.
• T-Mobile’s recent deployment following the release of additional 2.5 GHz spectrum as part of Auction 108, beginning in March 2024.

T-Mobile had capitalized on its early advantage, building out 5G in 600 MHz spectrum to cover 200 million Points of Presence (PoPs) as of 2020, following that up with wide deployment in its mid-band 2.5 GHz spectrum holdings. Despite performance boosts for AT&T and Verizon from additional C-band spectrum in Q4 2023, T-Mobile still led the pack with a median 5G download speed of 275.50 Mbps as of May 2024, 23% faster than next placed Verizon. Its lead had narrowed since August, with Verizon’s C-band spectrum helping it increase median 5G performance from 133.56 Mbps in June to 215.57 Mbps in December. AT&T also saw performance pick up in the second half of 2023, and at the turn of the year, these trends pointed towards a much more competitive 5G market during 2024, while also driving increased capacity for wireless provider’s 5G FWA services.

T-Mobile has continued to innovate in order to drive performance gains across its 5G network. In addition to deploying a 5G Standalone architecture, it is pushing the envelope on carrier aggregation, most recently completing a test with Ericsson and Qualcomm of six carrier aggregation, stitching together two channels of each of its 2.5 GHz, PCS, and AWS spectrum to achieve download speeds in excess of 3.6 Gbps. Furthermore, having finally gained access to additional 2.5 GHz spectrum it won during auction 108 in 2022, but had not been cleared to use, T-Mobile has rapidly been enabling the new spectrum across its footprint. This has allowed it to extend its lead in the market, recording a median 5G download speed of 287.14 Mbps in March 2024. As cellular providers ramp up their home broadband offerings via 5G fixed wireless access (FWA), as we recently highlighted, they will need to balance fixed net additions carefully in order to ensure cellular performance does not suffer, and will require additional high capacity spectrum over time to meet demand.

Driving improved quality of experience and consumer sentiment

The uplift in 5G performance is driving improved consumer sentiment, as measured by net promoter score (NPS). NPS is a key performance indicator of customer experience, categorizing users into Detractors (score 0-6), Passives (score 7-8), and Promoters (score 9-10), with the NPS representing the percentage of Promoters minus the percent of Detractors, displayed in the range from -100 to 100. Reviewing Speedtest Intelligence data shows that U.S. cellular providers returned either flat or declines in 5G NPS over the period March to August 2023. From September onwards, we see a strong uplift in 5G NPS in particular for Verizon and AT&T following their C-band deployments. T-Mobile on the other hand, has seen a sizable increase in 5G NPS in March, corresponding to its deployment in additional mid-band spectrum.

Key to this growth in 5G NPS for all three cellular providers, is the impact that increases in 5G performance are impacting the quality of experience for end users for key use cases such as video streaming and mobile gaming. Both measures, as highlighted by Ookla’s 5G Game Score™ and 5G Video Score™ metrics have seen strong increases over the course of the past year.

Positioning the U.S. strongly internationally

Performance gains from all national cellular providers have enabled the U.S. to climb the ranks when compared to its peers internationally. Over the course of just one year, it has moved from 20th place on Ookla’s Speedtest Global Index, to reach 11th as of February 2024. This has been driven by increased availability of mid-band spectrum for 5G use, as advocated for by the CTIA, which recently released a report claiming that the U.S. could benefit from an additional $200 billion in economic growth over the next 10 years through allocating additional mid-band spectrum for 5G.

U.S. providers are also continuing to expand the reach of 5G networks across the market. 5G Service, the share of known operator locations where 5G was present (of total locations with cellular service) climbed from 68.4% in Q3 2023 to 76.7% in Q1 2024. Deployment of 5G in low band spectrum is also critical to ensuring high 5G Availability – the share of 5G users that spend a majority of their time connected to 5G networks. The U.S. still tracks as one of the leading markets globally for 5G Availability, despite its comparatively large landmass, although that metric remained level quarter-on-quarter.

Closing disparities in 5G performance between U.S. states & rural locations

While national median speeds continue to advance, there remain some significant disparities in 5G performance at an individual state level. The Midwestern States fare best, with Illinois, Kansas, North Dakota, and Minnesota all within the top-5 performing states nationally, with median 5G download speeds above 225 Mbps during Q4 2023. At the other end of the scale are U.S. states with the highest shares of rural populations, including Vermont, Maine, Mississippi, and West Virginia, which had median download speeds below 100 Mbps.

Differing allocations of spectrum, channel bandwidths, device capabilities, and carrier aggregation options all impact the observed performance of each service provider across the locations they serve. While each network operator has its own 5G deployment strategy, the deployment of mid-band spectrum for capacity in urban locations, complemented with sub-1 GHz spectrum to enable wider and better 5G coverage, is the common approach. While performance gaps will remain as a result of these deployment strategies, recent mid-band spectrum deployments, including in C-band and 2.5 GHz, are beginning to help close the performance gap for some states.

We examined T-Mobile’s recent performance, comparing data between February and March, as it deploys 5G in its additional 2.5 GHz spectrum. The results show performance has increased across a wide range of U.S. states, with its median 5G performance increasing by more than 10 Mbps within 35 States and the District of Columbia. Among the ten states with the lowest median 5G download speed (based on data for all providers), T-Mobile showed the most significant performance uplifts in West Virginia (+79.73 Mbps), Wyoming (+66.61 Mbps), and New Hampshire (+48.50 Mbps).

Speedtest Intelligence data also illustrates the gap between rural and urban U.S. locations, which has widened over the last three years as mid-band deployments have tended to focus on more urban locations. That is beginning to change, with both T-Mobile and Verizon keen to highlight the impact of their recent spectrum deployments on rural 5G performance. While AT&T only saw a minor increase in median 5G download speeds in rural locations, both T-Mobile and Verizon have targeted significant increases in performance through mid-band spectrum deployments.

All eyes on download throughput – upload & latency require attention

Additional spectrum has fueled surges in download performance thanks to the deployment of 5G in mid-band spectrum, but upload and latency metrics have not improved to the same degree. All three cellular providers maintained relatively static median upload speeds across the two year period we examined (Q1 2022 to Q1 2024). 5G latency performance was a mixed picture, with T-Mobile the only provider to consistently improve, reducing its latency from 55 ms in Q1 2022 to 46 ms in Q1 2024. Both Verizon and AT&T saw latency grow over the same period.

It’s very clear that U.S. cellular providers are prioritizing improvements in download performance. This will likely continue in 2024, as T-Mobile, AT&T, and Verizon each seek to gain the upper hand, using any 5G network advantages to capture a larger share of competitive churn. Over time however, we expect the relative importance of upload and latency performance to grow, as 5G download performance begins to exhibit diminishing marginal returns, and increasing importance is given to improving the experience of latency-sensitive use cases such as video calling, mobile gaming, and augmented reality.

2024 is set to drive renewed competitive pressure between all of the service providers in the U.S., with the continuing deployment of 5G in mid-band spectrum, T-Mobile’s acquisition of US Cellular’s assets, and made all the more interesting given the DISH wildcard. We’ll continue to monitor and report on 5G performance trends in the U.S., and their impact on Speedtest users. To learn more about Ookla Speedtest Intelligence, please get in touch.