Telecom, chips and data centers
Spectrum
The radio frequencies mobile operators license from governments to carry signals.
Last reviewedWhat does Spectrum mean?
Spectrum is the range of radio frequencies used to send mobile signals. Governments own it and license blocks of it to operators, usually through auctions, for long periods such as 15 to 20 years. Low-band spectrum (below about 1 GHz) travels far and through walls, so it is good for coverage. Mid-band and high-band spectrum (such as millimetre wave for 5G) carry much more data over shorter distances. Example: an operator that pays 3 billion for a 20-year licence is spending about 150 million a year on spectrum before it builds a single tower. Spectrum costs are a large part of a mobile operator's investment and a barrier to entry.
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Related terms
- Capex intensityCapital spending as a share of revenue.
- Barriers to entryWhat makes it hard for new competitors to enter a market.
- Capex (capital expenditure)Spending on long-lived assets such as machines and buildings.
- Take-up rateThe share of homes or customers who could buy a service that actually do.
- FablessA chip company that designs chips but has them made by someone else.
- FoundryA company that manufactures chips designed by other firms.
- Yield (manufacturing)The share of units made that come out good enough to sell.
- PUE (power usage effectiveness)Total data center power divided by the power used by the computing equipment.