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4G/3G/WiFi

Scarce Spectrum Could Set Back Job Growth

Investment of up to $53 billion on 4G networks over the next five years could add tens of thousands of jobs in the U.S. -- if operators can get enough spectrum for major deployments -- according to new research from Deloitte Development LLC .

The report, "The Impact of 4G Technology on Commercial Interactions, Economic Growth, and U.S. Competitiveness," says that wireless companies in the U.S. could invest $25 billion to $53 billion in 4G between 2012 and 2016, triggering $73 billion to $151 billion in gross domestic product growth and creating 371,000 to 771,000 jobs.

Deloitte says that the $25 billion figure assumes a scenario in which "U.S. 4G deployment proceeds at a moderate pace and the transition from 3G to 4G extends to the middle of the decade." The $53 billion figure assumes that U.S. carriers spend more and faster, helping keep the U.S. in a leading position in worldwide mobile broadband deployments.

One major sticking point, according to Deloitte, is the availability of spectrum in the U.S. The Federal Communications Commission (FCC) is moving toward opening up an extra 500MHz of spectrum over the next nine years.

Even that may not be enough, Deloitte suggests. The report says that there is a continuing need to find new spectrum and better exploit existing radio waves.

Why this matters
The report links 4G development with economic and job growth in the U.S. and highlights the continuing need for more spectrum for mobile broadband expansion.

See more
Read up on the spectrum crunch in the U.S.



— Dan Jones, Site Editor, Light Reading Mobile

joset01 12/5/2012 | 4:55:42 PM
re: Scarce Spectrum Could Set Back Job Growth

I haven't heard much about white spaces recently. Could they fill in data capacity? Hit or miss?

paolo.franzoi 12/5/2012 | 4:55:41 PM
re: Scarce Spectrum Could Set Back Job Growth

Okay so what is the agenda behind this report?  Job creation is a hot topic right now so any report that endangers job growth would seem to be a hot button.


My view is that the report is bogus.  The extra jobs would have to mean that there is a massive increase in capex to support them.  I would expect a SHIFT in capex not an increase.  So it is not clear if a single job would be created or not.


seven


 

DCITDave 12/5/2012 | 4:55:40 PM
re: Scarce Spectrum Could Set Back Job Growth

Deloitte's agenda is to get some consulting business. :)


But the report just uses the same formula that every Chamber of Commerce uses when finding some mystical magical way to correlate $ spent on a network to people employed. 


 

shygye75 12/5/2012 | 4:55:39 PM
re: Scarce Spectrum Could Set Back Job Growth

Well, it's clear that the frequency manufacturing business will benefit handsomely here.


Oh, wait ...

kaps 12/5/2012 | 4:55:38 PM
re: Scarce Spectrum Could Set Back Job Growth

The spectrum wonks here in Aspen seem about split on the chances of new technologies like white spaces becoming anything useful anytime soon. "I keep hearing about these new technologies and they're always 5 years away," said one doubter.


Though there are some who would want to push the envelope and try new things -- more unlicensed bands -- there apparently is a real core of D.C. types who only believe in licensed spectrum sold to the highest bidder. And they are in positions of power, so it will be tough to change that way of thinking anytime soon. So I'm not sure where all this money D&T foresees is going to go, other than to buy off broadcasters and other spectrum holders. It ain't going to create a half-million new jobs.

kaps 12/5/2012 | 4:55:38 PM
re: Scarce Spectrum Could Set Back Job Growth

The spectrum wonks here in Aspen seem about split on the chances of new technologies like white spaces becoming anything useful anytime soon. "I keep hearing about these new technologies and they're always 5 years away," said one doubter.


Though there are some who would want to push the envelope and try new things -- more unlicensed bands -- there apparently is a real core of D.C. types who only believe in licensed spectrum sold to the highest bidder. And they are in positions of power, so it will be tough to change that way of thinking anytime soon. So I'm not sure where all this money D&T foresees is going to go, other than to buy off broadcasters and other spectrum holders. It ain't going to create a half-million new jobs.

sam masud 12/5/2012 | 4:55:37 PM
re: Scarce Spectrum Could Set Back Job Growth

Couldn't agree more.

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