Independent Research Again Confirms More Spectrum is Critical to U.S. Economy

While we conduct our semi-annual survey that provides usage, investments and other interesting wireless industry metrics, we also rely on independent third party organizations for statistics and facts.

As we’ve done in the past, we created a one-page document that highlights some of the third-party research. Based on the results, it’s clear the U.S. wireless industry is major economic engine that provides millions of jobs, innovation and value.

Some of the data highlights includes:

• The U.S. wireless industry accounted for $33 billion in productivity gains for U.S. businesses in 2011; these efficiencies will grow to be worth more than $1.4 trillion over the next 10 years.(1)
• The U.S. wireless industry is valued at $195.5 billion, which is larger than publishing, agriculture, hotels and lodging, air transportation, motion picture and recording and motor vehicle manufacturing industry segments. It rivals the computer system design service and oil and gas extraction industries.(2)
• As of June 2011, there were 31.6% of U.S. wireless-only households, up from 10.5% in 2006.(3)
• Even though the U.S. population is less than 5% of the world’s total population and total U.S. subscribership is less than 6% of the world’s total wireless subscribers, the U.S. has more than 21% of global 3G/4G subscribers and 87% of global LTE subscribers.(4)
• The average smartphone user consumes 435 MB per month in Q1 2011, which is an increase of 89% from 230 MB per month in Q1 2010.(5)

Yet in order for these benefits to continue, the wireless industry must be able to purchase more spectrum. If the 500 MHz of spectrum that the National Broadband Plan (NBP) identified was made available, third-party research shows that the economic benefits would be tremendous:(6)

• $166 billion increase in U.S. GDP;
• At least 350,000 new U.S. jobs;
• Additional $36.7 billion in government revenues; and
• $13.1 billion increase in wireless applications and content sales.

Additional spectrum is vital for the U.S. wireless industry to remain the world’s leader and to continue to provide Americans with the best mobile products and services.

Sources:

1. Roger Entner, Recon Analytics, The Wireless Industry: The Essential Engine of US Economic Growth (2012), available at http://reconanalytics.com/wp-content/uploads/2012/04/Wireless-The-Ubiquitous-Engine-by-Recon-Analytics-1.pdf (last visited June  25, 2012).
2. Id.
3. Stephen J Blumberg, Julian V. Luke, Wireless substitution: Early release of estimates from the National Health Interview Survey, January-June 2011, National Center for Health Statistics, 2011, available at http://www.cdc.gov/nchs/data/nhis/earlyrelease/wireless201112.pdf (Last visited June 25, 2012).
4. Informa Telecoms & Media Group, WCIS database, (Last visited May 1, 2012).
5. Don Kellogg, Nielsen Wire, “Average Smartphone Data Usage Up 89% as Cost per MB Goes Down 46%”, June 2011, available at http://blog.nielsen.com/nielsenwire/online_mobile/average-u-s-smartphone-data-usage-up-89-ascost-per-mb-goes-down-46/ (last visited June 25, 2012).
6. Roger Entner, Recon Analytics, The Wireless Industry: The Essential Engine of US Economic Growth (2012), available at http://reconanalytics.com/wp-content/uploads/2012/04/Wireless-The-Ubiquitous-Engine-by-Recon-Analytics-1.pdf (last visited June  25, 2012).