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4G Network Investments in the U.S. Could Reach $53 Billion by 2016: Deloitte

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August 22, 2011

4G Network Investments in the U.S. Could Reach $53 Billion by 2016: Deloitte

By Rajani Baburajan, TMCnet Contributor


Wireless telecom companies in the United States are likely to invest $25 to $53 billion in fourth generation (4G) networks between 2012 and 2016, according to Deloitte (News - Alert).


The massive investment in 4G networks has the potential to accelerate $73 to $151 billion in gross domestic product growth (GDP) and create 371,000 to 771,000 jobs during the period, the research firm said.

Additionally, mobile broadband products and services are likely to positively impact people’s work, learning and lives, Deloitte said its report called “The Impact of 4G Technology on Commercial Interactions, Economic Growth, and U.S. Competitiveness.”

“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, vice chairman and U.S. media and telecommunications sector leader, Deloitte, in a statement. “The key to harnessing the potential benefits of 4G technology lies in America's market-driven wireless sector.”

Cloud computing is expected to fuel 4G growth. Cloud enables the U.S. to gain from 4G's impact by allowing developers and entrepreneurs to analyze the market's response to new applications, content, solutions and business models – cheaper and quicker.

The 4G mobile broadband will assist minority groups, rural communities and localities with limited access to full broadband connectivity.

America's success in 3G was driven by entrepreneurial innovation. When the government auctioned large amounts of spectrum, removed spectrum caps limiting individual carriers' spectrum holdings and permitted market forces to operate, private enterprise pursued new opportunities and a robust 3G ecosystem was born.

Recently, independent analyst and research firm Frost & Sullivan announced that LTE (News - Alert) deployments will fuel the growth of Wireless Protocol Analyzers and Network Monitoring Systems market to reach $850.6 million in 2016 from $575.3 million in 2009.

Wireless data services being offered at competitive rates lead to requirements for network and service troubleshooting tools and protocol analysis-based optimization, according to Frost & Sullivan (News - Alert).

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.


Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Stefanie Mosca


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