CTIA-The Wireless Association released a new
study that reveals the massive positive impact wireless broadband
technology is having on the United States economy. The independent
report, commissioned by CTIA and prepared by analyst Roger Entner as a
follow-up to a 2005 Ovum Report, projects the total value of wireless
broadband and mobile voice services to exceed $427 billion by the year
2016, and additional benefits to the Gross Domestic Product of $860
billion over the next ten years.
In 2005, 68.8 million US enterprise users had mobile wireless services,
with 25% using a mobile wireless broadband solution. By 2016, the US is
projected to have 81.9 million mobile enterprise users, with 83% using
wireless broadband.
Additional findings include:
- In 2005, the productivity value of all mobile wireless services was worth $185 billion, greater than the total value of the U.S. pharmaceutical industry (according to BizStats.com).
- An adjustment of Ovum's original
estimate of the U.S. economy's productivity gains attributable to
mobile voice services in 2004 from $118 billion to $157 billion.
- In 2005, mobile wireless broadband services generated productivity gains to the U.S. economy worth $28 billion per year.
- Between 2004 and 2005, the productivity enhancements generated by the use of mobile wireless broadband tripled in value.
While the 2005 Ovum Report, The Economic Impact of the U.S. Wireless Industry on the U.S. Economy,
focused on the macroeconomic impact of the U.S. wireless industry, the
newly released follow-up study focuses on the impact that the use and
deployment of wireless broadband technology currently has, and is
projected to have on the U.S. economy. The new analysis shows even
greater productivity and efficiency gains than first reported, and was
hailed by CTIA President and CEO Steve Largent as another clear
indicator of the increasing importance of the wireless industry to the
United States' economic vitality.
"This study provides strong evidence that the wireless industry
continues to be a major player in the U.S. economy and an important
driver for growth," said Largent. "At a time when America is in the
midst of an economic pinch, more and more employers are turning to
wireless broadband technology to help reduce costs, increase efficiency
and productivity, and stay competitive in the marketplace."
The report found that the health care sector and small businesses are
the big winners when it comes to the benefits from the implementation
and use of wireless broadband. For example, in 2005, productivity
improvements due to use of mobile broadband solutions across the U.S.
health care industry were valued at almost $6.9 billion. By 2016, that
number will triple to $27.2 billion.
In addition to looking at the impact of wireless
broadband on the U.S. economy as a whole, the report also examined the
annual productivity gains and cost saving for the five largest U.S.
states--California, New York, Florida, Texas, and Illinois. The combined
yearly cost savings for these five states alone, due to the
implementation and use of wireless broadband, is expected to increase
from $10.1 billion in 2005 to more than $47 billion in 2016. The full report and a podcast interview with Entner can be found at http://www.ctia.org.