Study Shows U.S. Economy Gets Major Boost from Wireless Broadband

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The US wireless industry trade body the CTIA has published a new study that reveals the massive positive impact wireless broadband technology is having on the United States economy. The independent report commissioned by CTIA and prepared by analyst Roger Entner as a follow up to a 2005 Ovum Report projects the total value of wireless broadband and mobile voice services to exceed $427 billion by the year 2016 and additional benefits to the Gross Domestic Product of $860 billion over the next ten years.

While the 2005 Ovum Report focused on the macroeconomic impact of the U.S. wireless industry, the newly released follow-up study focuses on the impact that the use and deployment of wireless broadband technology currently has, and is projected to have on the U.S. economy. The new analysis shows even greater productivity and efficiency gains than first reported, and was hailed by CTIA President and CEO Steve Largent as another clear indicator of the increasing importance of the wireless industry to the United States' economic vitality.

"This study provides strong evidence that the wireless industry continues to be a major player in the U.S. economy and an important driver for growth," said Largent. "At a time when America is in the midst of an economic pinch, more and more employers are turning to wireless broadband technology to help reduce costs, increase efficiency and productivity, and stay competitive in the marketplace."

The report found that the health care sector and small businesses are the big winners when it comes to the benefits from the implementation and use of wireless broadband. For example, in 2005, productivity improvements due to use of mobile broadband solutions across the U.S. health care industry were valued at almost $6.9 billion. By 2016, that number will triple to $27.2 billion.

In 2005, 68.8 million US enterprise users had mobile wireless services, with 25% using a mobile wireless broadband solution. By 2016, the US is projected to have 81.9 million mobile enterprise users, with 83% using wireless broadband.

Additional findings include:

  • In 2005, the productivity value of all mobile wireless services was worth $185 billion, greater than the total value of the U.S. pharmaceutical industry (according to BizStats.com).
  • An adjustment of Ovum's original estimate of the U.S. economy's productivity gains attributable to mobile voice services in 2004 from $118 billion to $157 billion.
  • In 2005, mobile wireless broadband services generated productivity gains to the U.S. economy worth $28 billion per year.
  • Between 2004 and 2005, the productivity enhancements generated by the use of mobile wireless broadband tripled in value.

In addition to looking at the impact of wireless broadband on the U.S. economy as a whole, the report also examined the annual productivity gains and cost saving for the five largest U.S. states - California, New York, Florida, Texas, and Illinois. The combined yearly cost savings for these five states alone, due to the implementation and use of wireless broadband, is expected to increase from $10.1 billion in 2005 to more than $47 billion in 2016.

The full report can be downloaded from the CTIA website.

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Total Annual Economic Benefits of the Six Tasks Identified

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Tags: ovum  wireless broadband  ctia  health 

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