A new report from Deloitte L.L.P. claims the mobile industry could invest up to $53 billion in so-called “4G” networks by between 2012 and 2016, contributing up to $151 billion in gross domestic product growth and creating up to 771,000 jobs.
The report, “The impact of 4G technology on commercial interactions, economic growth and U.S. competitiveness,” notes that the $53 billion figure assumes U.S. carriers investing more rapidly in 4G networks and produce 4G-based offerings before global competitors gain traction. “In this scenario, the demand stimulated by new offerings justifies more network investment, setting off a virtuous cycle of investment and market response that positions the U.S. to retain its mobile broadband leadership,” the company noted.
“Investment in such a powerful form of communication contributes to the economic recovery and provides a job-creating engine for the future,” said Phil Asmundson, vice chairman and U.S. media and telecommunications sector leader at Deloitte. “The key to harnessing the potential benefits of 4G technology lies in America’s market-driven wireless sector, which encourages the emergence of innovative applications that spur productivity and could produce the same surge of innovation and demand we experienced during the 3G era.”
It should also be noted that the report claims that investments could be as low as $25 billion over the same time frame, with GPD growth beginning at $73 billion and 371,000 new jobs created. Numbers that are still impressive.
Deloitte noted that cloud computing is having a significant impact on the uptake of 4G services by allowing “developers and entrepreneurs to analyze the market’s response to new applications, content, solutions and business models – cheaper and quicker.”
“Cloud computing will allow handheld devices to be more compact and efficient while making them tremendously more useful and powerful,” Asmundson said. “Applications, storage and computing power all can largely reside in the cloud, but only if connectivity is robust, reliable and secure. The benefits of 4G and cloud go beyond the telecom sector. Together, 4G and cloud technologies support the kind of entrepreneurial ecosystem that has made the United States a mobile broadband leader.”
The firm added that the growth in 3G services was driven by entrepreneurial innovation that was unleashed following the auction of spectrum assets and the removal of spectrum caps that allowed carriers to further support the rollout of robust 3G services. Those same factors could be coming into play again as the Federal Communications Commission is looking to expand the availability of spectrum, though demand is expected to continue to outstrip supply.
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