U.S. to see $53 billion in 4G network investments by 2016

telecommunications companies in the United States could invest $25 to $53
billion in fourth generation cellular wireless networks (4G) between 2012 and
2016, triggering $73 to $151 billion in gross domestic product growth and
creating 371,000 to 771,000 jobs, according to Deloitte.  

growth could occur as high-tech companies create new mobile broadband products
and services, further changing the way people live, work and learn.

The $25
billion figure assumes a baseline scenario in which U.S. 4G deployment proceeds
at a moderate pace and the transition from 3G to 4G extends to the middle of
the decade.

Under these
conditions, U.S. firms are vulnerable to incursions by foreign competitors
capitalizing on aggressive efforts in their home markets to deploy 4G networks
and develop 4G-based devices and services.

The $53
billion figure assumes a scenario in which U.S. carriers invest more rapidly in
4G networks and start to produce popular 4G-based offerings before global
competitors gain traction.

In this
scenario, the demand stimulated by new offerings justifies more network
investment, setting off a virtuous cycle of investment and market response that
positions the U.S. to retain its mobile broadband leadership.

in such a powerful form of communication contributes to the economic recovery
and provides a job-creating engine for the future,” said Phil Asmundson,
vice chairman and U.S. media and telecommunications sector leader, Deloitte.

The key to
harnessing the potential benefits of 4G technology lies in America’s
market-driven wireless sector, which encourages the emergence of innovative
applications that spur productivity and could produce the same surge of
innovation and demand experienced during the 3G era.

According to
the report, more than 150 carriers in 60 countries are currently committed to
4G deployments and trials. South Korea, Sweden and China are examples of
countries moving rapidly to reap the benefits of 4G technology.  

adoption of cloud computing further enables the U.S. to take full advantage of
4G’s potential impact by allowing developers and entrepreneurs to analyze the market’s
response to new applications, content, solutions and business models cheaper
and quicker.

computing will allow handheld devices to be more compact and efficient while
making them tremendously more useful and powerful,” Asmundson added.

storage and computing power all can largely reside in the cloud, but only if
connectivity is robust, reliable and secure. The benefits of 4G and cloud go
beyond the telecom sector. Together, 4G and cloud technologies support the kind
of entrepreneurial ecosystem that has made the United States a mobile broadband

The advent of
high-performance wireless capacity, coupled with cloud infrastructure and other
advances, is proliferating new offerings and capabilities that exceed what has
been possible with 3G technology, the report notes.

In addition
to consumers, a variety of U.S. end-user industries, including nonprofit and
government entities, are likely to use devices and services incorporating the
capabilities of 4G technology to better serve their customers, patients,
clients and students.

This includes
applications such as augmented reality for businesses, machine-to-machine
technology involving the use of sensors and actuators and the development of
smart highways.

report indicates that the deployment of 4G mobile broadband has special
implications for certain disadvantaged markets including minority groups, rural
communities and localities with limited access to full broadband connectivity,
and some small businesses.

The report
explains how equipping these marginalized groups with 4G access helps move them
further into the nation’s economic mainstream, thereby serving the public
interest while boosting U.S. competitiveness.

analysis emphasizes that America’s success in 3G was driven by entrepreneurial
innovation. When the government auctioned large amounts of spectrum, removed
spectrum caps limiting individual carriers’ spectrum holdings and permitted
market forces to operate, private enterprise pursued new opportunities and a
robust 3G ecosystem was born.

The FCC is
moving to expand spectrum supply through a new incentive auction, but the
report indicates that it will be difficult to keep pace with projected demand.
Accordingly, there is a continuing need to find additional ways to make better
use of available spectrum and to unlock additional spectrum.

Telecomlead.com Team
[email protected]