Study: move to 3G and 4G would result in major job gains

The coming wireless transition to 3G and 4G could be a major impetus to U.S. job growth, say the authors of a new study published by Washington think tank, NDN. According to Robert J. Shapiro and Kevin A. Hassett, "This analysis estimates that under the current transition, every 10 percent increase in the adoption of 3G and 4G wireless technologies could add more than 231,000 new jobs to the U.S. economy in less than a year."

Shapiro and Hassett compiled ownership of mobile devices that operate on successive generations of wireless infrastructure and compared that to state-by-state employment data to create "The Employment Effects of Advances in Internet and Wireless Infrastructure: Evaluating the Transitions from 2G to 3G and from 3G to 4G." The results show that the earlier shift from 2G to 3G networks created "nearly 1.6 million new jobs across the United States, between April 2007 and June 2011 - even as total private sector employment fell by nearly 5.3 million positions."

The authors project that the move to 3G and 4G "should continue to stimulate new job creation in a short time frame, generating more than 231,000 jobs for every 10 percentage point gain in penetration rates within a year." Specifically, these jobs "hold particular promise in areas such as online retail, health care, energy, and business services."

In addition to job creation, the authors point out that 4G would build out broadband networks to rural areas now underserved by existing carriers. And, "4G-enabled mobile services also could provide a less costly way for lower- and moderate-income Americans to access broadband."

The authors did not look at the impact of wireless investment on the quality of the new jobs. Within the communications industry, union representation provides employees a mechanism to ensure that the profits they generate are shared, and don't just go to the top  one percent. CWA represents employees at AT&T Mobility, but the other wireless companies have opposed employee efforts to seek union representation.

The Employment Effects of Advances in Internet and Wireless Infrastructure: Evaluating the Transitions from 2G to 3G and from 3G to 4G (NDN, Jan., 2012)