Licensed spectrum generates $400 bn in economic activity: CTIA

Spectrum licensed to U.S. wireless carriers generates more than $400 billion annually in economic activity, said CTIA-The Wireless Association.

The telecom report issued by the Brattle Group and prepared for CTIA-The Wireless Association said that the $400 billion includes direct and indirect economic impact generated by the mobile carriers, but excludes in economic benefits produced by mobile health, mobile education, the app economy and other sectors.

The report suggests that American telecom policymakers need to look for hundreds of MHz of additional licensed spectrum to sustain the economic growth.

Telecom Tower
“Licensed spectrum serves as the industry’s backbone for network operators to boost speeds and capacity, device manufacturers to develop new products and apps and content developers to create new offerings,” said Meredith Attwell Baker, president and CEO of CTIA.

Americans value their mobile service between $5-$10 trillion more than they actually pay to use it.

For every one person employed in the wireless industry, an additional 6.5 people get jobs, said the report. That figure is higher than the comparable multiplier for the U.S. manufacturing sector and higher than any other single segment of the telecommunications sector.

As a result of the multiplier effect, the wireless industry supported over 1.3 million jobs in 2013.

More than $400 billion in annual economic activity is based on 2013 data showing $172 billion in direct spending on U.S. wireless services and an additional $228 billion in indirect and induced impacts. Additionally, the wireless industry paid over $40 billion in federal, state and local taxes in 2013.

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