300,000 newly created jobs and $230 billion additional GDP generated over the next five years
WASHINGTON, DC – Today, Mobile Future, David Sosa, Ph. D and Marc Van Audenrode, Ph.D of the Analysis Group released a new study, Private-Sector Investment and Employment Impacts of Reassigning Spectrum to Mobile Broadband in the United States, which reveals the crucial role mobile broadband can play in boosting the nation’s economy if additional spectrum is allocated for wireless networks.
The paper explains how robust private sector investment leading to substantial job creation, can be further stimulated by the reassignment of spectrum to mobile broadband. Between 2002 and 2010 alone, capital spending in the wireless industry exceeded $185 billion, creating roughly 420,000 jobs throughout the economy.
Reassigning an additional 300 MHz of spectrum to mobile broadband over five years, the report concludes, will spur $75 billion in new capital spending, creating more than 300,000 jobs and $230 billion in additional GDP. The release of an additional 200 MHz of new spectrum after five years will create an additional 200,000 jobs and increase GDP by an additional $155 billion.
U.S. mobile networks, however, currently are operating at 80 percent of capacity, well above the aggregate utilization rate of 65 percent for all countries worldwide. Drs. Sosa and Audenrode conclude that while “mobile broadband is a critical platform for future innovation, the U.S. wireless industry currently faces severe spectrum constraints, limiting the ability of companies to develop new mobile broadband products and services. Facilitating the reallocation of underutilized spectrum can create a favorable environment for private sector investment in critical wireless infrastructure that will create jobs, spur demand and encourage innovation. And that’s just the tip of the iceberg in terms of long-run economic benefits. The sooner that spectrum is reassigned to mobile broadband, the sooner we’ll see private sector investment and job creation.”
The report stresses that the release of additional spectrum requires no handouts from the U.S. Treasury and will generate substantial spillover effects as innovative companies rush to create new mobile broadband products and services. Emerging wireless technologies and applications have the capacity to alter economic relationships, lead to productivity and gains, and ultimately boost employment and GDP.
“The future of innovation is powered by wireless technology,” said Mobile Future chair Jonathan Spalter. “Reallocating underutilized spectrum is absolutely critical to growing an extensive and robust mobile broadband ecosystem that will create jobs, spur consumer demand and facilitate innovation and economic opportunities. This new data is particularly timely as Congress continues its important work to provide more mobile spectrum for American consumers.”
Mobile Future is a coalition of cutting-edge technology and communications companies, consumers and a diverse group of non-profit organizations, working to support an environment which encourages investment and innovation in the dynamic wireless sector. Our mission is to help inform and educate the public and key decision makers in business and government on the broad range of wireless innovations that are transforming our society and the nation’s economy.