Additional Spectrum Will Fuel One of the Few Robust Sectors of Our Economy

Were you aware that the U.S. wireless industry is one of the strongest markets, if not the strongest market in our economy today? Did you know that if 500 additional MHz of spectrum becomes available for commercial use, more people will have jobs, the government will be able to whittle away at its overwhelming debt and our U.S. GDP will increase dramatically?

In May, Roger Entner of Recon Analytics released a report detailing the considerable impact the U.S. wireless industry has on our nation's economy.

Entner calculated that the impact of making an additional 500 MHz of spectrum available for commercial use over the next ten years would mean:

• An additional 350,000 new U.S. jobs.
• Increase of $166 billion in U.S. GDP.
• Boost of $36.7 billion in government revenues.
• Increase of $13.1 billion in wireless applications and content sales.

These numbers are on top of an already stunning list of statistics.

The wireless industry is now larger than the publishing, agriculture, hotels and lodging, air transportation, motion picture and recording and motor vehicle manufacturing industry segments. The report highlights the irrefutable economic impact of industry on the U.S. through jobs, GDP and productivity:

1. Valuable New Spectrum: The wireless industry created significant value from newly auctioned off wireless spectrum with U.S. GDP increasing by $1.73 billion per year for every 10 MHz of additional spectrum provided to operators.
2. Contribution to U.S. GDP:  The wireless industry added $146.2 billion to the U.S. GDP in 2011.
3. Applications Economy:  The wireless industry created an entirely new business sector, applications, that grew from almost zero to $8.2 billion in 4 years.
4. Jobs: The wireless industry is responsible for 3.8 million direct and indirect jobs in 2011, which is an increase of more than 200,000 over the past six years; this accounts for 2.6% of all U.S. employment.
5. Taxes Paid: The wireless industry contributed $88.6 billion in taxes, fees and surcharges in 2010.
6. Productivity Gains: The wireless industry is an important ingredient in productivity gains in the U.S., accounting for $33 billion in 2011, and more than $1.4 trillion over the next decade.
7. Stimulus: The wireless industry enables $680 million in annual stimulus for consumers and businesses (in the form of the employee-liable discounted plans).
8. Consumer Surplus: The wireless industry produced a consumer surplus of $502.7 billion in 2011.

Entner's paper clearly shows the momentous economic impact of the U.S. wireless industry now and in the future. The wireless industry looks forward to our continued work with the Federal Communications Commission to making an additional 500 MHz available a reality.