Release of new spectrum can increase GDP by an additional $155 billion


Between 2002 and 2010 alone, capital spending in the
wireless industry in the U.S. exceeded $185 billion, creating roughly 420,000
jobs throughout the economy, according to Mobile Future Analysis Group.


Reassigning an additional 300 MHz of spectrum to mobile
broadband over five years, the report concludes, will spur $75 billion in new
capital spending, creating more than 300,000 jobs and $230 billion in
additional GDP.


The release of an additional 200 MHz of new spectrum
after five years will create an additional 200,000 jobs and increase GDP by an
additional $155 billion.


U.S. mobile networks, however, currently are operating at
80 percent of capacity, well above the aggregate utilization rate of 65 percent
for all countries worldwide.


While mobile broadband is a critical platform for future
innovation, the U.S. wireless industry currently faces severe spectrum
constraints, limiting the ability of companies to develop new mobile broadband
products and services.


Facilitating the reallocation of underutilized spectrum
can create a favorable environment for private sector investment in critical
wireless infrastructure that will create jobs, spur demand and encourage


And that’s just the tip of the iceberg in terms of
long-run economic benefits. The sooner that spectrum is reassigned to mobile
broadband, the sooner we’ll see private sector investment and job
creation,” said senior analyst, Mobile Future.


The report stresses that the release of additional
spectrum requires no handouts from the U.S. Treasury and will generate
substantial spillover effects as innovative companies rush to create new mobile
broadband products and services.  


Emerging wireless technologies and applications have the
capacity to alter economic relationships, lead to productivity and gains, and
ultimately boost employment and GDP.


“The future of innovation is powered by wireless
technology,” said Jonathan Spalter, chairman, Mobile Future.


“Reallocating underutilized spectrum is absolutely
critical to growing an extensive and robust mobile broadband ecosystem that
will create jobs, spur consumer demand and facilitate innovation and economic
opportunities. This new data is particularly timely as Congress continues its
important work to provide more mobile spectrum for American consumers,”
Spalter added.


By Team
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