U.S. WIRELESS INDUSTRY: ECONOMIC IMPACT
1. Wireless broadband investment will create as many as 205,000 jobs by 2015.1
2. For every $1 invested in wireless broadband, it will create an additional $7-10 for GDP.2
3. Consumers spend >$63 billion/year in the world on wireless accessories (cases, batteries, memory cards, hands-free kits, headsets, etc).3
4. Mobile entertainment content and services (games, music, social media, etc) revenue projected to increase from $33.2 billion in 2010 to $38.4 billion in 2011.4
5. Businesses spent more than $1.9 billion in 2010 on non-handsets (e.g. tablets, notebooks, e-readers); by 2014, it will be more than $5 billion on non-handsets.5
6. Wireless economic contributions have grown faster (16%) than the rest of the economy (3%).6
7. The wireless industry directly/indirectly employs >2.4 million Americans.7
8. Since CTIA started tracking in 1985, the cumulative industry investment has totaled more than $310 billion, not including more than $40 billion in payments to the U.S. Treasury for spectrum.8
9. Estimates of productivity gains from wireless broadband services are >$860 billion from 2005-2016.9
10. U.S. has the highest minutes of use (MOUs) per month per user and the lowest average revenue per minute of service of the 26 OECD countries tracked by Bank of America Merrill Lynch.10
11. The MyWireless.org annual consumer survey released in March 2011 found that “95.3% of wireless customers are satisfied with their wireless service.”11
12. Wireless jobs paid >50% higher than the national average of other production workers.12
13. In 2010, U.S. providers reported making capital investments totaling $24.9 billion, which was more than the providers in the 5 largest European countries (France, Germany, Italy, Spain and UK) spent combined ($17.9 billion, 2009).13
2. For every $1 invested in wireless broadband, it will create an additional $7-10 for GDP.2
3. Consumers spend >$63 billion/year in the world on wireless accessories (cases, batteries, memory cards, hands-free kits, headsets, etc).3
4. Mobile entertainment content and services (games, music, social media, etc) revenue projected to increase from $33.2 billion in 2010 to $38.4 billion in 2011.4
5. Businesses spent more than $1.9 billion in 2010 on non-handsets (e.g. tablets, notebooks, e-readers); by 2014, it will be more than $5 billion on non-handsets.5
6. Wireless economic contributions have grown faster (16%) than the rest of the economy (3%).6
7. The wireless industry directly/indirectly employs >2.4 million Americans.7
8. Since CTIA started tracking in 1985, the cumulative industry investment has totaled more than $310 billion, not including more than $40 billion in payments to the U.S. Treasury for spectrum.8
9. Estimates of productivity gains from wireless broadband services are >$860 billion from 2005-2016.9
10. U.S. has the highest minutes of use (MOUs) per month per user and the lowest average revenue per minute of service of the 26 OECD countries tracked by Bank of America Merrill Lynch.10
11. The MyWireless.org annual consumer survey released in March 2011 found that “95.3% of wireless customers are satisfied with their wireless service.”11
12. Wireless jobs paid >50% higher than the national average of other production workers.12
13. In 2010, U.S. providers reported making capital investments totaling $24.9 billion, which was more than the providers in the 5 largest European countries (France, Germany, Italy, Spain and UK) spent combined ($17.9 billion, 2009).13
U.S. WIRELESS INDUSTRY INNOVATION: DEVICES
14. More than 630 different handsets and devices are manufactured by more than 32 companies for the U.S. market.14
15. From April 2010-March 2011, major handset makers launched more than 120 new smartphones.15
16. The first 4G handset was introduced in March 2010. As of June 2011, there are dozens of handsets and tablets on a number of carriers from a variety of device manufacturers.16
17. More than 242 million of the handsets operating on wireless carriers’ networks are capable of browsing the web.17
18. 18. 270 million data-capable devices, including 78.2 million smart phones or wireless-enabled PDAs and 13.6 million wireless-enabled laptops, notebooks, tablets or wireless broadband modems, are in the hands of consumers as of December 2010.18
15. From April 2010-March 2011, major handset makers launched more than 120 new smartphones.15
16. The first 4G handset was introduced in March 2010. As of June 2011, there are dozens of handsets and tablets on a number of carriers from a variety of device manufacturers.16
17. More than 242 million of the handsets operating on wireless carriers’ networks are capable of browsing the web.17
18. 18. 270 million data-capable devices, including 78.2 million smart phones or wireless-enabled PDAs and 13.6 million wireless-enabled laptops, notebooks, tablets or wireless broadband modems, are in the hands of consumers as of December 2010.18
19. As of December 2010, there were 26.6% U.S. wireless-only households. 5 years ago, 8.4% were wireless-only households.19
20. 3G technology has been deployed to areas covering more than 98% of the U.S. population.20
21. Despite having less than 6% of global wireless subscribers, the U.S. is home to more than 20% of global 3G subscribers.21
22. The U.S. has more unique 3G subscribers than the five largest EU countries combined (France, Germany, Italy, Spain and UK).22
23. As of third quarter 2010, the average revenue per minute in the U.S. was $0.04. Across Europe’s developed countries, the average revenue per minute was $0.13. As a result, the average wireless consumer in Western Europe used just 172 minutes a month compared to 793 minutes a month for the U.S.23
24. In 2010, there were 238.9 billion prepaid MOUs reported, amounting to 10.7% of the 2.24 trillion total reported MOUs for the year.24
25. Prepaid revenues for 2010 amounted to more than $16 billion out of about $160 billion in total service revenues.25
26. As of December 2010, there are 302.9 million wireless connections in the U.S.26
27. Wireless penetration in December 2010 was 96%.27
28. U.S. wireless consumers used more than 2.2 trillion minutes in 2010 (or more than 6 billion per day).28
29. In the 12 months ending December 2010, more than 2 trillion text messages were sent and received (or 6 billion per day).29
30. The U.S. is home to the most mobile Internet users than any other country.30
ENVIRONMENT
31. The wireless industry has committed to supporting a “one-charger-fits-all” solution for new wireless devices as of January 1, 2012. Developed by the Open Mobile Terminal Platform industry standards group and adopted by GSMA, the Universal Charger Solution will provide an estimated 50% reduction in standby energy consumption.31
32. Wireless manufacturers are continually improving the design of wireless devices and packaging to be more lightweight and environmentally-friendly. The use of substances such as lead and cadmium are being phased out of devices while increasing the use of recycled materials. The new generations of wireless devices currently weigh approximately 79g; this is 42% less than earlier models.32
33. Energy is a major expense for wireless carriers, accounting for about 86 percent of their operating costs. Wireless carriers are exploring the use of alternative energy sources such as wind, bio-fuel, and solar power at cell sites.33
34. According to the U.S. Environmental Protection Agency (EPA), recycling one million cell phones saves enough energy to power more than 185 U.S. households with electricity for a year.34
35. For every 5,000 cellphones recycled, we save 11,000 kilowatt hours of energy.35
36. In a survey conducted by MyWireless.org in March 2011, almost 54 percent of consumers had donated or recycled an “old” device or accessories.36
37. Nearly half of mobile consumers surveyed by ABI Research in 2009 said they are somewhat likely or very likely to be influenced by suppliers’ green credentials when purchasing services or devices.37
38. Morgan Stanley predicts the worldwide smart grid market will have grown annually from about $20 billion in 2010 to almost $100 billion by the year 2030.38
39. By 2015, ABI Research says there will be approximately 212 million smart meter systems and smart grid projects installed worldwide.39
40. Carriers and suppliers are using more energy-efficient and environmentally responsible equipment and components in their overall operations to find energy savings of up to 70 percent and substantial reductions in their carbon dioxide (CO2) emissions.40
32. Wireless manufacturers are continually improving the design of wireless devices and packaging to be more lightweight and environmentally-friendly. The use of substances such as lead and cadmium are being phased out of devices while increasing the use of recycled materials. The new generations of wireless devices currently weigh approximately 79g; this is 42% less than earlier models.32
33. Energy is a major expense for wireless carriers, accounting for about 86 percent of their operating costs. Wireless carriers are exploring the use of alternative energy sources such as wind, bio-fuel, and solar power at cell sites.33
34. According to the U.S. Environmental Protection Agency (EPA), recycling one million cell phones saves enough energy to power more than 185 U.S. households with electricity for a year.34
35. For every 5,000 cellphones recycled, we save 11,000 kilowatt hours of energy.35
36. In a survey conducted by MyWireless.org in March 2011, almost 54 percent of consumers had donated or recycled an “old” device or accessories.36
37. Nearly half of mobile consumers surveyed by ABI Research in 2009 said they are somewhat likely or very likely to be influenced by suppliers’ green credentials when purchasing services or devices.37
38. Morgan Stanley predicts the worldwide smart grid market will have grown annually from about $20 billion in 2010 to almost $100 billion by the year 2030.38
39. By 2015, ABI Research says there will be approximately 212 million smart meter systems and smart grid projects installed worldwide.39
40. Carriers and suppliers are using more energy-efficient and environmentally responsible equipment and components in their overall operations to find energy savings of up to 70 percent and substantial reductions in their carbon dioxide (CO2) emissions.40
KIDS AND WIRELESS STATS
41. In a national consumer study, 62% were aware that wireless carriers offer parental controls that allow parents to restrict a child’s cellphone use and place limits on a child’s wireless Internet access, texting and downloading.41
42. 78% of teens responded that mobile phones make them feel safe while on the go.42
42. 78% of teens responded that mobile phones make them feel safe while on the go.42
TAXES AND FEES STATS
43. The average taxes and fees imposed on wireless consumers is more than 16.3%, compared to an average general business tax of 7.4%.43
44. 47 states and the District of Columbia impose state, local and federal taxes and fees higher than those on other taxable goods and services.44
45. 22 states and the District of Columbia (Nebraska, Washington, New York, Florida, , Illinois, Rhode Island, Missouri, Pennsylvania, Kansas, Texas, Maryland, Utah, South Dakota, Arizona, Tennessee, Arkansas, Oklahoma, North Dakota, California, New Mexico, Kentucky and Colorado) each charge wireless consumers more than 16% in wireless taxes, fees and surcharges.45
46. 5 states charge in excess of 20%. They are: Nebraska (23.69%); Washington (23%); New York (22.83%); Florida (21.62%); and Illinois (20.90%).46
44. 47 states and the District of Columbia impose state, local and federal taxes and fees higher than those on other taxable goods and services.44
45. 22 states and the District of Columbia (Nebraska, Washington, New York, Florida, , Illinois, Rhode Island, Missouri, Pennsylvania, Kansas, Texas, Maryland, Utah, South Dakota, Arizona, Tennessee, Arkansas, Oklahoma, North Dakota, California, New Mexico, Kentucky and Colorado) each charge wireless consumers more than 16% in wireless taxes, fees and surcharges.45
46. 5 states charge in excess of 20%. They are: Nebraska (23.69%); Washington (23%); New York (22.83%); Florida (21.62%); and Illinois (20.90%).46
APP FACTS
47. Mobile app downloads to increase to 25 billion by 2015, from only 2.6 billion in 2009.47
48. By 2016, more than 44 billion apps will have been downloaded. If the global population is roughly 7 billion people, that will mean 6 mobile app downloads for every man, woman and child.48
49. The average American’s smartphone had 22 apps; feature phone 10 apps.49
50. North America is poised to lead in downloading smartphone apps by 2011, surpassing the current leader Europe and still leading Asia-Pacific.50
48. By 2016, more than 44 billion apps will have been downloaded. If the global population is roughly 7 billion people, that will mean 6 mobile app downloads for every man, woman and child.48
49. The average American’s smartphone had 22 apps; feature phone 10 apps.49
50. North America is poised to lead in downloading smartphone apps by 2011, surpassing the current leader Europe and still leading Asia-Pacific.50
Footnotes:
1 Robert Crandall and Hal Singer, “The Economic Impact of Broadband Investment,” March 2010, at 3.
2 Larry Summers, “Technology Opportunities, Job Creation, and Economic Growth,” Remarks at the New America Foundation, June 28, 2010. Avaliable athttp://www.whitehouse.gov/administration/eop/nec/speeches/technological-opportunities-job-creation-economic-growth.
3 The comScore 2010 Mobile Year in Review, February 2011.
4 CTIA’S Ovum Report.
5 Campbell, Glen. Global Wireless Matrix 4Q10- What’s in store for 2011. Bank of America Merrill Lynch, 2010.
6 The comScore 2010 Mobile Year in Review, February 2011.
7 Campbell, Glen. Global Wireless Matrix 4Q10- What’s in store for 2011. Bank of America Merrill Lynch, 2010.
8 IBID.
9 Semi-Annual Survey and Campbell, Glen. Global Wireless Matrix 4Q10 - What’s in store for 2011. Bank of America Merrill Lynch, 2010.
10 14th Competition Report, http://wireless.fcc.gov/index.htm?job=cmrs_reports. 2010.
11 MyWireless.org Annual Survey, 2011.
12 CTIA Research.
13 Semi-Annual Survey and Campbell, Glen. Global Wireless Matrix 4Q10- What’s in store for 2011. Bank of America Merrill Lynch, 2010.
14 CTIA Research.
15 IBID.
16IBID.
17CTIA’s Wireless Industry Indices: Semi-Annual Data Survey Results, A Comprehensive Report from CTIA Analyzing the U.S. Wireless Industry, Year-End 2010 Results, released May 2011.
18 IBID.
19 IBID.
20 14th Competition Report, http://wireless.fcc.gov/index.htm?job=cmrs_reports. 2010.
21 Informa Telecoms & Media Group WCIS Database. 2011.
22 The comScore 2010 Mobile Year in Review, February 2011.
23 Campbell, Glen. Global Wireless Matrix 4Q10- What’s in store for 2011. Bank of America Merrill Lynch, 2010.
24 CTIA Research.
25 IBID.
26 CTIA’s Wireless Industry Indices: Semi-Annual Data Survey Results, A Comprehensive Report from CTIA Analyzing the U.S. Wireless Industry, Year-End 2010 Results, released May 2011
27 IBID.
28 IBID.
29 IBID.
30 “Critical Mass: The Worldwide State of the Mobile Web”, Nielsen Mobile (July 2008) at 2, 4.
31 CTIA Reseach.
32 IBID.
33 IBID.
34 EPA, “eCycle Cell Phones”, http://www.epa.gov/epawaste/partnerships/plugin/cellphone/index.htm.
35 CTIA Reseach.
36 MyWireless.org Annual Survey.
37 ABIresearch, “Green Purchasing Trends for Mobile Phones and Services”,http://www.abiresearch.com/research/1004052.(2009).
38 The Economist, “Making every drop count”, http://www.economist.com/node/17388318?sttory_id=17388318(2010).
39 ABIresearch, “Green Purchasing Trends for Mobile Phones and Services”,http://www.abiresearch.com/research/1004052.(2009).
40 CTIA Research.
41 MyWireless.org Annual Survey, 2011.
42 CTIA Research.
43 Mackey, Scott. A Growing Burden: Taxes and Fees On Wireless Service. 2011.
44 IBID.
45 IBID.
46 IBID.
47 Press Release, “Mobile App Store Downloads to Reach 25 billion by 2015, Juniper Report finds”, available athttp://juniperresearch.com/viewpressrelease.php?pr=195 (last accessed May 18, 2011).
48 “44 Billion Mobile App Downloads by 2016” ABIresearch available athttp://www.businesswire.com/news/home/20110428006734/en/44-Billion-Mobile-App-Downloads-2016-ABI.
49 “The State of Mobile Apps”, Nielsenwire available at http://blog.nielsen.com/nielsenwire/online_mobile/the-state-of-mobile-apps/ (last accessed May 18, 2011).
50 Press Release, “Smartphone Downloads from Mobile App Stores to Peak in 2013” ABIresearch available athttp://www.abiresearch.com/press/1651-Smartphone+Downloads+from+Mobile+App+Stores+to+Peak+in+2013.
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