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ExecutiveSummary
Thepurposeofthisreportistoanalyze,fromanengineeringperspective,theconsequencesoffailingtomakenewspectrumavailabletoconsumers,theeconomyandthewirelesssector.Thisreportdiscusseshowspectrumrelatestocapacity,howdifferenttypesofapplicationsanddevicescanconsumeavailablecapacity,andtheeffectsofinsufficientspectrum.Forconsumers,theseeffectsincludeunreliableserviceandperformanceandpotentiallyhigherconnectivitycosts—adevelopmentthatwouldplaceanessentialmodernserviceoutofthereachofmanyAmericans,includingthosewhostandtogainthemostfromallthatmobileconnectivityhastooffer.Totheextentthatserviceprovidersrespondtocapacityconstraintsbylimitingdemandthroughusagecapsandsignificantlyhigherpricing,consumers’abilitytoaccesstheInternetmaybelimitedorcomeatahighercost.Theseeffectswillparticularlyharmthose,includingmanyminoritiesandlow-incomeAmericans,whoprimarilyrelyontheirmobiledevicestoaccesstheInternet.Thisinturnrollsbackthepromiseofmobileconnectivityandinnovation,denyingaccesstocriticalservicesandopportunities.Themarketconsequenceofsuchanenvironmentwillbelessincentiveforbusinessestoinvestinnewapplications,servicesanddevicesbecauseperformance,andthuscustomerenthusiasm,willlikelybesubpar.Thisjeopardizesthe2.4millionAmericanjobscurrentlysupportedbymobileinnovation.And,theultimatepriceofthisdownwardspiralisalossofU.S.leadershipintheglobalinnovationeconomy.
Introduction
U.S.mobileinnovationcontinuestosurgeforward,fueledbyacombinationoffasternetworks,powerfulnext-generationwirelessdevices,includingsmartphonesandtablets,andinnovativeapplicationsthattakeincreasingadvantageofourconstantstateofconnectivity.Lifestylesareenhancedandworkismoreproductive,asthefullandgrowingvalueoftheInternetisincreasinglyever-presentandaccessibleinthepalmsofourhands.CompellingdataalreadyexiststoillustratetheimportantrolethatmobiletechnologyplaysinpoweringourinnovationeconomyandempoweringAmericanconsumersandbusinesses.And,weseeclearevidencetodaythatwirelessbroadbandishelpingtobridgethedigitaldivide,withminorityandlower-incomeAmericansincreasinglyturningtomobileservicesastheirprimaryconnectiontotheInternet.ThenumberofU.S.consumerswithbroadbandaccessontheirmobiledevicehasrisenfromthreemillionin2006to73millionin2008.
1
Asearlyas2014,morepeoplemaygoonlineviamobiledevicesthanPCs.
2
And,withinthisdecadeanestimated10billiondevices—fromthemedicaltabletatthe
1
Source:“USBroadbandRanking:DoesitMatter?,”
PCWORLD
,June5,2009.
2
Source:MobileInternetReport,
MorganStanley
,December2009.
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