Spectrum Increases Spur Greater Economic Growth Than Any Other Business Sector

Increases in wireless spectrum have created enormous economic impacts in the American economy and do so with a greater benefit per dollar invested than any other business sector.

In the three years between 2011 and 2014, the wireless industry’s contribution to the U.S. GDP increased from $146.2 billion in 2011 to reach $194.8 billion per year by 2015, according to a 2016 report(1) by Recon Analytics. This indicates that every 10 MHz of spectrum provided to operators creates an increase of $24.3 billion in additional GDP per year, on average over that three-year span.

During the same time, the Recon Analytics study indicated that total and induced employment derived from the wireless industry increased from 3.8 million to 7.03 million, indicating that every 10 MHz of spectrum creates more than 1.6 million jobs connected with the wireless industry.

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10-year average impact of an additional 10 MHz of spectrum

  • US GDP increases by $3.1 billion
  • US employment increases by more than 104,799
  • Government revenues increase by $0.5 billion
  • Wireless service provider revenues increase by $2.6 billion
  • Wireless applications and content sales increase by $1.6 billion

Wireless Best At Stimulating Economic Growth

In addition to its total economic and jobs contribution, wireless growth produces the largest gains in the economy as compared to other business sectors(2).

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Right-click chart to view a much larger image.

(1) “The Wireless Industry: Revisiting Spectrum, the Essential Engine of US Economic Growth”, Recon Analytics, http://reconanalytics.com/2016/04/the-wireless-industry-revisiting-spectrum-the-essential-engine-of-us-economic-growth/, Downloaded .pdf, p.18 Accessed May 29, 2016

(2) Ibid, p. 32