By
Telecom Lead Team: The adoption and use of successive
generations of cell phones supported by the transition from 2G to 3G wireless
networks led to the creation of 1,585,000 new jobs in the U.S. between April
2007 and June 2011.
A
rapid transition from 3G to 4G mobile broadband networks could create more than
231,000 additional jobs within a year, according to a new economic study
released by NDN.
The
study called “The Employment Effects of Advances in Internet and Wireless
Infrastructure: Evaluating the Transitions from 2G to 3G and from 3G to
4G,” was co-authored by economists Robert J. Shapiro, chairman of the
Globalization Initiative at NDN and former U.S. Under Secretary of Commerce for
Economic Affairs, and Kevin A. Hassett, senior fellow and director of economic
policy studies at the American Enterprise Institute.
The
technical advances from 2G to 3G wireless broadband and the spread of these
more advanced technologies led directly to the creation of more than 1.5
million new jobs over four years, during a period when overall private-sector
employment declined by 5.3 million jobs.
“The
private investments that spurred the build-out of 3G broadband networks, with
all of their innovations, happened in a highly-competitive wireless market in
the United States. The same competitive forces are now driving the
additional investments and innovations in the current transition from 3G to 4G
wireless networks,” said Shapiro.
Using
a unique database drawn from the Nielsen Mobile Insights survey (Q4’06-Q2’11)
on the ownership of mobile devices operating on successive generations of
wireless infrastructure, combined with state-by-state employment data, the
research by Shapiro and Hassett found that every 10 percentage point increase
in the penetration of a new generation of wireless phones and networks leads to
a 0.07 percentage point increase in jobs in the next quarter, with continuing
gains in subsequent quarters.
“The
authors make a strong case for the inclusion of measures to accelerate the
deployment of 4G infrastructure in any national job creation strategy to help
jumpstart America’s economy. As policymakers look to 2012, they should be sure
to encourage a regulatory environment that promotes continued high levels of
private-sector investment in today’s competitive wireless market,” said
Simon Rosenberg, president and founder of NDN.
“Past
experience suggests that the shift to 4G wireless infrastructure will also open
the door to a wide range of new applications, products, services, and even
industries that no one can anticipate in advance,” said Hassett.
The
study also examines the emergence and spread of new business operations based
on the transition from 2G to 3G, including mobile e-commerce, mobile social
networking, and location-based services. The authors also analyze the
types of economic changes and benefits which may attend the current transition
from 3G to 4G, in such areas as health, energy and cloud-based services.
For
America to stay competitive and prosperous, it is imperative that
private-sector investment and upgrades in these technologies continue to
advance, so our businesses and workers can meet demand from consumers and firms
on a national and global scale.
