Abstract:The 5G New Radio (NR) standard introduces new frequency bands allocated in Frequency Range 2 (FR2) to support enhanced Mobile Broadband (eMBB) in congested environments and enables new use cases such as Ultra-Reliable Low Latency Communication (URLLC). The 3GPP introduced 256QAM support for FR2 frequency bands to further enhance downlink capacity. However, sustaining 256QAM on FR2 in practical environments is challenging due to strong path loss and susceptibility to distortion. While 256QAM can improve theoretical throughput by 33%, compared to 64QAM, and is widely adopted in FR1, its real-world impact when utilized in FR2 is questionable, given the significant path loss and distortions experienced in the FR2 range. Additionally, using higher modulation correlates to higher BLER, increased instability, and retransmission. Moreover, 256QAM also utilizes a different MCS table defining the modulation and code rate at different Channel Quality Indexes (CQI), affecting the UE's link adaptation behavior. This paper investigates the real-world performance of 256QAM utilization on FR2 bands in two countries, across three RAN manufacturers, and in both NSA (EN-DC) and SA (NR-DC) configurations, under various scenarios, including open-air plazas, city centers, footbridges, train station platforms, and stationary environments. The results show that 256QAM provides a reasonable throughput gain when stationary but marginal improvements when there is UE mobility while increasing the probability of NACK responses, increasing BLER, and the number of retransmissions. Finally, MATLAB simulations are run to validate the findings as well as explore the effect of the recently introduced 1024QAM on FR2.