Overall, the wireless telecom services industry paid $62.6 billion to federal, state, and local bodies of the U.S. government in 2004. This figure comprises:

• $14.6 billion (14 percent of $104.4 billion) in federal, state, and local sales and transaction taxes and surcharges on wireless services;
• $9 billion (6.9 percent of $12.3 billion) in sales taxes on handset purchases;
• $9 billion (7.5 percent of $33,400 x 3.61 million jobs) in employer-paid social security payments;
• $9 billion (7.5 percent of $33,400 x 3.61 million jobs) in employee-paid social security payments;
• $26.5 billion (22 percent of $33,400 x 3.61 million jobs) in income tax from
  workers dependent on the wireless services industry;
• $2.6 billion in contributions to federal and state Universal Service funds.

Future Benefits From Wireless Services
Over the next 10 years, we can expect that the use and supply of wireless services and handsets will generate more than $450 billion in additional U.S. GDP and will create an additional two to three million jobs. In addition, the industry is expected to generate $700 billion in additional consumer surplus from use of wireless voice services as volumes of use grow and prices decline further. Furthermore, the productivity gains from wireless data services services will become much more evident. We estimate that productivity gains will generate more than $600 billion in additional GDP over the next decade. To put these gains in context: the tax cuts of the Bush Administration are estimated to be worth approximately $670 billion to the U.S. economy over the next 10 years, and the recent proposal to repeal the Estate Tax is estimated to be worth around $290 billion over the next 10 years.

This report clearly shows the beneficial impact the wireless industry has, and more importantly will have, on the U.S. economy. Wireless technology supercharges the revolution in information technology, by enabling businesses to apply information technology everywhere, rather than just at offices.

Ovum and Indepen analyzed the impact that the United States wireless telecom industry had on the U.S. economy in 2004 and the projected impact it will have over the next 10 years. The following is a summary of that report, which is based largely on publicly available data concerning wireless carriers, wireless handset and equipment manufacturers and the overall wireless telecom industry, as well as on Ovum’s own independent analysis and research.

 

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