I think the argument is that a given amount of spectrum has a maximum capacity of data that can be transmitted. Using one cell tower to serve a large area (whic

I think the argument is that a given amount of spectrum has a maximum capacity of data that can be transmitted. Using one cell tower to serve a large area (which means a large number of devices and a large amount of data) caps the amount of data that can be transmitted within that area. There are two solutions to that: use more spectrum or serve smaller areas. If you're serving smaller areas, there are cheaper technologies available than 3G, and they also don't require dedicated spectrum.