Wireless Packs Big Economic Punch

A new study commissioned by CTIA-The Wireless Association® details to what degree modern wireless technology is driving the U.S. economy. The study was performed by analyst Roger Entner and is a follow-up to work he did for CTIA in 2005. While the 2005 report focused more on the macroeconomic punch of the U.S. wireless industry, this most recent study zeros-in on the use of wireless broadband and the enormous impact those services are having, and will have, on the U.S. economy.  For example, the study found that in 2005 wireless broadband services generated productivity gains to the U.S. economy worth $28 billion per year. By 2011, productivity gains will reach $79 billion and in 2016 that figure will rise to $127 billion. 

To put the study in context, in 2005 just 68.8 million US enterprise users had wireless services, and only a quarter were using wireless broadband. But by 2016, the US is projected to have 81.9 million wireless enterprise users, with 83% using wireless broadband.     

The report also analyzed how wireless broadband services are effecting critical sectors such as health care. Here again, the results are enormously positive. The study found that in 2005, productivity improvements due to use of mobile broadband solutions across the U.S. health care industry were worth almost $6.9 billion. By 2016, it is projected to triple to $27.2 billion.  

The study also catalogued wireless' total impact (broadband + voice service) on the United States economy and those findings are extremely encouraging. In 2005, the productivity value of all wireless services was worth $185 billion, greater than the total value of the U.S. pharmaceutical industry (according to BizStats.com). By 2016, this number will grow to $427 billion and will exceed today's motor vehicle manufacturing and pharmaceutical industries combined.    

While it has been well publicized that Americans of all demographics are now using wireless services at work, home and play, there really hasn't been much focus on how these services are moving America's economy forward. We hope this study can spur that conversation. In touch-and-go economic times such as these, it is important to know that this very young industry (that was born in Chicago 25 years ago this coming October) is producing the products and services that enable America - and Americans - to remain competitive, productive and prosperous.