Monday, August 22, 2011

4G a boon to U.S. economy and jobs, study says

The wireless carriers' investment in 4G networks could be the salve that the ailing U.S. economy is looking for. The carriers could invest between $25 billion and $53 billion in building out their 4G network through 2016, according to a study from Deloitte. That in turn could lead to the creation of 371,000 to 771,000 jobs, and gross domestic product growth of $73 billion to $151 billion.

"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 a consultant for Deloitte. The rise of 4G networks could provide some support for an economy still struggling to recover, and which some believe is slipping back into a recession. The recent bitter political struggle to raise the national debt ceiling, the sharp declines in the stock market, and the continued high rate of unemployment have many still concerned.
The wide-ranging estimate assumes two different scenarios. The baseline scenario has the carriers deploying 4G technology at a moderate pace with a slow transition from 3G to 4G extending into the middle of the decade. Deloitte warns that under these conditions, the U.S. firms will be vulnerable to foreign competitors looking to jump ahead in the 4G race.

Source : Here

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