Study Shows California and U.S. Economy Get Major Boost from Wireless Broadband

2008-05-29 23:50:21 -

- CTIA-The Wireless Association(R) released a new study that reveals the massive positive impact wireless broadband technology is having on the United States economy and the state of California. 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 U.S. Gross Domestic Product of $860 billion over the next ten years. The study also estimates that the total annual cost savings to businesses in California will increase more than threefold in ten years, from $5 billion in 2006 to more than $16 billion in 2016.

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 broadly, as well as in the five largest U.S. states. 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 economic vitality of California and the entire country.

"This study provides strong evidence that the wireless industry continues to be a major economic driver in California and in the U.S. as a whole," said Largent. "Wireless broadband technology and services are equipping the enterprise with cost-effective ways to increase efficiency and productivity and stay competitive in today's marketplace."

According to the report, between 2005 and 2016, cost savings to enterprises in California from inventory loss reduction due to the implementation and use of wireless broadband technology is estimated to increase from $3 billion to $9.6 billion, and from $819 million to $2.6 billion cost savings with sales force automation.

The study also found that when looking at the U.S. economy, 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 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.

The full report and a podcast interview with Entner can be found at www.ctia.org.

CTIA is the international association for the wireless telecommunications industry, representing carriers, manufacturers and wireless Internet providers.

www.ctia.org

CTIA-The Wireless Association
Joe Farren
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