Competition in telecommunications has added 150,000 jobs to the U.S. economy since passage of the 1996 Telecom Act, according to an analysis released by the CompTel/ASCENT Alliance. A state-by-state break down shows net job growth of 1,500 or more in 20 states.

"The Telecom Act has been an engine for job creation in the United States," said H. Russell Frisby Jr., CEO of the CompTel/ASCENT Alliance. "But the D.C. Circuit Court's decision last week to overturn FCC rules that promote competition has suddenly put these much-needed jobs at risk."

States that have opened the door widest to phone competition have been rewarded with thousands of jobs in the telecom sector, which includes telephone service providers, Internet service providers, and other telecom- related companies. Texas leads the way with 23,983 additional jobs during the Act's first eight years, followed by California with 21,413 jobs, New York with 13,545, and Florida with 13,080. Georgia, Pennsylvania, Illinois, New Jersey, Michigan and Ohio all have experienced job growth of 5,000 or more during the period.

Competition has created thousands of new jobs by enabling the establishment of hundreds of new telecom businesses and expanding markets for equipment manufacturers. For example, the competition created by the Act has led to the investment of more than US$150 billion in the economy since 1996. Similarly, competitive carriers -- which did not exist before the 1996 Act -- now generate more than US$50 billion in revenue a year -- revenue that is used to employ hundreds of thousands of Americans in high-wage jobs.

Even accounting for the boom and bust cycle of the telecom market, the industry as a whole employs substantially more people than it would have but for competition made possible by the 1996 Act. In addition, consumers are saving about US$10 billion a year and small businesses are projected to save more than US$6 billion on telecom expenses this year as service providers cut prices to compete.

"Competitors have invested heavily in our nation's infrastructure to bring more choices to consumers. Unfortunately, the jobs, the investment, and consumers' savings could all go away if the D.C. Circuit's decision is allowed to stand," Frisby said. "An appeal to the Supreme Court is essential to preserve the gains of the last eight years."

Estimated Job Stimulus from Telecommunications Competition in SelectedStates

State	Jobs

Texas	23,983
California	21,413
New York	13,545
Florida	13,080
Georgia	8,820
Pennsylvania	7,280
Illinois	6,928
New Jersey	5,520
Michigan*	5,335
Ohio	5,200
Virginia	3,822
Missouri	3,312
North Carolina	3,248
Colorado	3,003
Washington	2,310
Massachusetts	2,110
Minnesota	1,950
Wisconsin*	1,786
Tennessee	1,639
Maryland	1,632

The CompTel/ASCENT analysis utilizes the Bureau of Labor Statistics' state-level data for the 32 states where data is available from November 1990 through November 2003. By estimating employment trends in the telecom industry both before and after the 1996 Telecom Act, the analysis compares expected November 2003 employment levels that would have occurred without passage of the Act to what has actually taken place. For states where BLS state-specific data is unavailable (indicated with an "*"), the telecom job estimate is based upon the average relationship for states with data relative to the level of non-farm employment in that state.

The CompTel/ASCENT Alliance was formed in November 2003 by the merger of the two leading trade associations in the competitive telecommunications industry, the Competitive Telecommunications Association (CompTel) and the Association of Communications Enterprises (ASCENT)."

Competition Created Jobs in the Telecoms Industry - Report