Wireless Industry Helps to Grow US Economy

The U.S. wireless industry is a key factor in the growth of the American economy.

Last year, the sector supported 3.8 million jobs – either directly or indirectly –and led to almost $200 billion in GDP, according to a new study.

The study undertaken by Recon Analytics for CTIA – The Wireless Association – also found that each 10MHz of spectrum added for commercial use will lead to $1.7 billion more in GDP and 7,000 more jobs in the United States.

In addition, the study predicts the wireless industry could lead to close to $1.5 trillion in more productivity in the U.S. economy over the next ten years, according to a press release. Also, the report said that during 2011 wireless use led to almost $90 billion in U.S. government revenue.    

If the sector adds 500 MHz over ten years – as the Federal Communications Commission suggests in the National Broadband Plan – it would lead to $86.5 billion more in U.S. GDP and 350,000 jobs, the study said.

"Any way you measure – by value, jobs, or productivity – wireless is an American growth leader fueled by investment and innovation," Recon Analytics founder Roger Entner. said in the press release.  "What we have is a perfect storm of breakthrough devices and accelerating investment by network providers as they compete to develop and deploy new generations of wireless infrastructure."

The study notes the growth in 4G mobile and the many new technologies now being sold. The mobile apps sector and other sector have skyrocketed from the strength in the wireless industry.

But additional growth could be restricted if there are shortages of spectrum, the study warns. “For now, new technologies such as 4G LTE, as well as investment in new towers and other infrastructure are squeezing more capacity from each MHz, but as a matter of physics, existing spectrum can expand only so far. To keep the growth going, the wireless industry not only needs additional spectrum, but also policies that won't get in the way of critical network investment," Entner said.

CTIA-The Wireless Association represents and advocates for the wireless industry.  It is holding a convention, CTIA Wireless 2012. between May 8 and 10 in New Orleans, according to MobilityTechzone.