Originally published: May 1, 2012
Last updated: May 1, 2012 - 3:17pm
Recon Analytics undertook a comprehensive review of data related to the economic impact of the US wireless broadband industry on the US economy. We have concluded that the impact is broad and deep.
In 2011, the economic impact includes the following highlights:
- The US wireless industry is responsible for 3.8 million jobs, directly and indirectly, an increase of more than 200,000 over the past six years; this accounts for 2.6% of all US employment.
- The wireless industry retained $146.2 billion in GDP in the US (and generated $195.5 billion in economic activity globally) in the 12 months from July 2010 to June 2011.1
- At $195.5 billion, the wireless broadband industry would rank as the 46th largest economy in the world, as measured by GDP.2
- The wireless industry is now larger than the publishing, agriculture, hotels and lodging, air transportation, motion picture and recording, and motor vehicle manufacturing industry segments and rivals the computer systems design services and oil and gas extraction industries.3
- The wireless industry and its direct and indirect employees paid $88.6 billion in taxes, including federal, state and local fees and taxes.4
- The consumer surplus, the difference between what end users are willing to pay and what they have to pay for services, was $502.7 billion in 2010.5
- According to Kantar Media, telecom has been the second largest advertising category in the United States for the last several years running and has two of the four largest advertisers in the country.
- The EU wireless penetration continues to outpace the US, with the EU reaching 126.2% at the end of 2009 and the US reaching 102.4% penetration in June 2011.
- After accounting for the higher EU subscriber penetration rates, the level of outbound and inbound minutes of use in the US is more than double the level seen in the EU (875 minutes versus 418 minutes).
- Average prices per minute of use in the US ($0.049 per minute) are a quarter of the EU price level ($0.167 per minute).
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