The $53 billion figure assumes a scenario in which U.S. carriers invest more rapidly and start to produce 4G-based offerings before global competitors gain traction.
telecommunications companies in the United States could invest $25 billion to
$53 billion in 4G cellular wireless networks between 2012 and 2016, triggering
$73 billion to $151 billion in gross domestic product growth and creating
371,000 to 771,000 jobs, according to a report from Deloitte. Additional growth
could occur as high-tech companies create new mobile broadband products and
services, further changing the way people live, work and learn.
report, "The Impact of 4G Technology on Commercial Interactions, Economic
Growth, and U.S. Competitiveness," investigates the economic dynamics
surrounding 4G technology and explains how the United States can maintain the
global leadership position in mobile broadband innovation it won during the 3G
$25 billion figure assumes a baseline 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. Under these conditions, U.S. firms are vulnerable to
incursions by foreign competitors capitalizing on aggressive efforts in their
home markets to deploy 4G networks and develop 4G-based devices and services.
$53 billion figure assumes a scenario in which U.S. carriers invest more
rapidly in 4G networks and start to produce popular 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 United States to retain
its mobile broadband leadership.
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 of 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."
report also noted rapid adoption of cloud computing further enables the United
States to take full advantage of 4G's potential impact by allowing developers
and entrepreneurs to analyze the market's response to new applications,
content, solutions and business models-cheaper and quicker.
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
advent of high-performance wireless capacity, coupled with cloud infrastructure
and other advances, is proliferating new offerings and capabilities that exceed
what has been possible with 3G technology, the report notes. In addition to
consumers, a variety of U.S. end-user industries, including nonprofit and
government entities, are likely to use devices and services incorporating the
capabilities of 4G technology to better serve their customers, patients,
clients and students. This includes applications such as augmented reality for
businesses, machine-to-machine technology involving the use of sensors and
actuators, and the development of smart highways.