WASHINGTON, July 19, 2018 /PRNewswire/ -- Reducing current
timelines for 5G wireless infrastructure deployments by 12 months
would unleash an additional $100
billion to the U.S. economy, according to a new report
commissioned by CTIA.
The analysis, developed by Accenture (NYSE: ACN), builds on a
2017 study of the economic impact of 5G deployment which estimated
a $500 billion boost to U.S. GDP and
the creation of 3 million new American jobs.
Today's study adjusted that model to estimate the impact of
accelerated 5G deployment enabled by the streamlining of federal,
state and local infrastructure rules for small cells—specifically,
updating rules for small cell deployments in rights-of-way and
creating reasonable fee structures for small cells.
"Accenture's findings illustrate the importance of an updated
federal framework to help accelerate small cell installations and
boost economic activity in communities across the country," said
Meredith Attwell Baker, CTIA
President and CEO. "Modernizing outdated infrastructure rules is
key to the United States winning
the global race to 5G and unlocking the benefits that will come
from the next generation of wireless."
Given that 300,000 small cells need to be deployed in the next
three to four years to serve 5G networks, the study recognizes that
modernization of infrastructure guidelines will be key to
decreasing the time required for a 5G network rollout.
"To make 5G a reality and reap the benefits it can bring, U.S.
communications infrastructure must evolve," said Tejas Rao, managing director and global 5G
offering lead for Accenture's network practice. "The deployment of
small cells will lay the foundation for 'smart cities' and more
innovative services, which will help strengthen the economy and
ultimately improve the way we live our lives."
This report builds on previous analyses Accenture Strategy
conducted for CTIA including a January
2017 report, which highlighted the economic and societal
impact of deploying 5G wireless and a April
2018 report, which found that the U.S. wireless industry
contributes $475 billion annually to
America's economy.
"5G is a crucial factor in creating new and agile business
models across industries that are predicated on wireless," said
Sanjay Dhar, managing director,
Accenture Strategy, Communications, Media & Technology. "The
economic benefit we isolated can only be achieved with robust
mobile ecosystems that quickly usher in the age of 5G."
About the Research
The accelerated economic impact of
5G was calculated from an economic model developed for the paper:
How 5G Can Help Municipalities Become Vibrant Smart Cities. In this
study, commissioned by the CTIA, Accenture Strategy and Accenture's
Network practice with support from Accenture Research forecasted 5G
rollout and adoption. The economic impact from 5G was estimated
using research that studied the impact of previous generational
shifts in wireless technology – specifically the impact of 3G
technology – by using historical estimates for employment
elasticity with respect to growth for U.S. GDP. This model was then
adjusted to estimate the impact of an accelerated deployment and
adoption timeline, as in the case of removing small-cell approval
barriers.
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 449,000 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.
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SOURCE CTIA