Licensed wireless spectrum generates $400 billion in annual economic activity for America
The $400 billion figure includes direct and indirect economic impact generated by the mobile carriers, but excludes billions more in economic benefits produced by mobile health, mobile education, the app economy and other sectors that use licensed spectrum as a platform for their own business models, according to the report, "Mobile Broadband Spectrum: A Vital Resource for the American Economy".
"Licensed spectrum is vital to the mobile industry and to our nation’s economy," said Meredith Attwell Baker, President and CEO of CTIA. "As this report shows, policymakers need to continue to look for hundreds of MHz of additional licensed spectrum so this economic growth is sustained and America remains the global leader in this rapidly changing sector. Licensed spectrum serves as the industry’s backbone for network operators to boost speeds and capacity, device manufacturers to develop new products and apps and content developers to create new offerings."
The Brattle Group report also shows that in large part because the fiercely competitive mobile sector drives down prices, Americans value their mobile service between $5-$10 trillion more than they actually pay to use it.
The positive effect of licensed spectrum also extends to job creation: for every one person employed in the wireless industry, an additional 6.5 people get jobs, according to the report. That figure is substantially higher than the comparable multiplier for the U.S. manufacturing sector and higher than any other single segment of the telecommunications sector. As a result of the multiplier effect, the wireless industry supported over 1.3 million jobs in 2013.
"Licensed spectrum is a finite resource that we must deploy efficiently to maximize benefits for all Americans. It fuels other sectors, and its value goes well beyond those measured here," said Coleman Bazelon, Principal, The Brattle Group. "Of the 645.5 MHz of licensed spectrum for commercial mobile use, 98.5 MHz came since the FCC released its National Broadband Plan in 2010 that stated the wireless industry needed 500 MHz by 2020 to meet consumer demands."
The report indicates that the more than $400 billion in annual economic activity is based on 2013 data showing $172 billion in direct spending on U.S. wireless services and an additional $228 billion in indirect and induced impacts. Additionally, the wireless industry paid over $40 billion in federal, state and local taxes in 2013.
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