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Genachowski’s upbeat view of mobile capex spending should be accompanied by continued light touch regulation

Gross domestic product did a 180 degree turn in the fourth quarter as the nation saw national output shrink by an annualized rate of .1%. The Bureau of Economic Analysis attributed the shrinkage to decreases in private inventory investment, federal government spending, exports, and state and local government spending.

The one saving grace was the increase in equipment and software expenditures, up 12.4% in the fourth quarter. While not the best proxy for broadband spending in America, it does reflect the demand for the lifeblood components of an all IP network.

This positive growth jives with an observation made today by Federal Communications Commission chairman Julius Genachowski who, in remarks made before the Southwest Family Enhancement Center, that annual capital investment in wireless has grown 25% since 2009, and that the U.S. accounts for 1/4 of global investment in mobile infrastructure.

Wireless broadband in particular and information technology in general are having a positive impact on gross private investment and overall GDP. Scaring off investors with even hints of new regulation is the last thing the economy needs.

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Surprising that Romney Hasn’t Harped on Wireless Broadband as a Driver for the Economy

Posted April 19th, 2012 in Broadband, CTIA, economy, Election 2012, Mitt Romney and tagged , , , by Alton Drew

We are in the silly season of American politics. The presumptive nominee for the Republican nomination, former Massachusetts Governor Willard Romney may be facing incumbent President Barack Obama in the November general election. Mr. Romney comes from the tech-prevalent state of Massachusetts, yet has failed to leverage in his campaign any experience he has with the benefits of technology in his home state.

It’s a missed opportunity. According to the CTIA, wireless data traffic has increased 123% over last year. In 2010 there were 62 million mobile-to-mobile devices worldwide. By 2020, that number, according to data cited by CTIA, is expected to top 16 billion.

CTIA also addressed the economy, concluding that for every dollar invested in wireless broadband, $7-$10 dollars would be added to our gross domestic product. Along with growth in GDP would come an additional 771,000 jobs added for the purpose of deploying 4G networks. These jobs would pay on average 50% more than jobs in other production industries.

Talking economic growth without mentioning the nation’s biggest influence on economic growth is like bringing a gun to a gun fight without any bullets.

Declining GDP growth means downward pressure on demand for broadband

Posted July 30th, 2010 in economy, GDP, net neutrality and tagged , , , by Alton Drew

The Department of Commerce’s Bureau of Economic Analysis released its first estimates for gross domestic product, the measure of our nation’s output and consumption. It was not encouraging.

The annual increase in GDP is at 2.4% for the second quarter of 2010. This is down from a revised 3.7% for the first quarter of 2010.

More telling of the state of broadband demand is the state of computer purchases. Final sales of computers accounted for .04 percentage point of the change in GDP for the second quarter, compared to an addition of .10 percentage points to the overall change in GDP in the first quarter of 2010.

What does this imply for broadband demand? Well, you can’t ride the super information highway without a computer. What’s even more troubling is that for the past 17 months, the FCC has wasted time and resources pushing a net neutrality policy that does not nothing for increasing facility deployment, reducing consumer prices, or increasing consumer demand.

Net neutrality may end up compounding the neutralization of consumer demand for broadband if GDP numbers keep declining this way.