U.S. Wireless Industry Contributes $475 Billion Annually to America's Economy and Supports 4.7 Million Jobs, According to New Report

"The wireless industry is a major driver of the U.S. economy and this report underscores why it is important for America to win the global race to 5G," said Meredith Attwell Baker, CTIA President and CEO. "We know that the next-generation of wireless will represent an even bigger boost to the economy, and that's why we need key policy reforms this year to ensure the U.S. wireless industry wins this global race."

The report shows that America's wireless industry is an accelerator for the U.S. economy - in terms of both jobs and GDP impact. Each direct wireless job results in 7.7 jobs throughout the economy, according to the report. This "multiplier" effect places the wireless industry ahead of other sectors, such as restaurants (1.5x multiplier) and hardware manufacturing (3.9x multiplier).

In addition, every dollar of the wireless industry's direct GDP contribution generates $3.20 of total GDP impact across the broader economy thanks to increased household spending and economic contributions from adjacent industries.

The study also shows the powerful impact of wireless investment and innovation across all 50 U.S. states. State-by-state information is available on CTIA's website.

The report builds on Accenture Strategy's previous analysis for CTIA, released in January 2017, which highlighted the economic and societal impact of deploying 5G wireless. That analysis found that the next generation of wireless would create 3 million new jobs and boost U.S. GDP by $500 billion, supported by a projected $275 billion in wireless investment.

"As the wireless industry continues to play a significant role in the U.S. economy, it is turning to the potential of 5G to accelerate innovation and growth by scaling small cell wireless infrastructure," said Tejas Rao, managing director and global 5G offering lead for Accenture's network practice. "New and innovative sectors, solutions and business models will emerge as telecom operators, industries and municipalities collaborate to develop 5G technology."

To keep pace with rising consumer demand for wireless data - 238% in the last two years - and build out 5G networks, wireless carriers will need to deploy roughly 800,000 modern wireless antennas - small cells - in the next few years. These small cells, similar in size to a pizza box, will enable new innovations including the Internet of Things, smart cites and autonomous cars.

"Consumer demands have pushed industry sectors to either require wireless to run their business, or to develop new business models predicated on wireless," said Sanjay Dhar, managing director, Accenture Strategy, Communications, Media & Technology. "5G will certainly advance this trend, and help the wireless industry push our economy forward."

About the Research 
Through a comprehensive study, commissioned by CTIA and conducted by Accenture Strategy, an economic model was created to estimate the contribution of the wireless industry to the U.S. economy at a national and state level. Economic contribution modeling allows an estimation of how the current state of an industry supports the broader local economy. Regional distributions for direct value-add, employment and production patterns were driven by publicly available data from the U.S. Bureau of Labor Statistics and the U.S. Bureau of Economic Analysis, and further adjusted based on available industry data.

About CTIA
CTIA® (www.ctia.org) represents the U.S. wireless communications industry and the companies throughout the mobile ecosystem that enable Americans to lead a 21st century connected life. The association's members include wireless carriers, device manufacturers, suppliers as well as apps and content companies. CTIA vigorously advocates at all levels of government for policies that foster continued wireless innovation and investment. The association also coordinates the industry's voluntary best practices, hosts educational events that promote the wireless industry and co-produces the industry's leading wireless tradeshow. CTIA was founded in 1984 and is based in Washington, D.C.

About Accenture
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world's largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 442,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

Accenture Strategy operates at the intersection of business and technology. We bring together our capabilities in business, technology, operations and function strategy to help our clients envision and execute industry-specific strategies that support enterprise wide transformation. Our focus on issues related to digital disruption, competitiveness, global operating models, talent and leadership help drive both efficiencies and growth. For more information, follow @AccentureStrat or visit www.accenture.com/strategy.

Accenture's network practice provides consulting and technology services to help telecommunications operators accelerate the deployment of next generation networks, launch digital services and optimize network operations. Please visit www.accenture.com/network

SOURCE CTIA

Related Links

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