Modernizing Rules around 5G Small Cells Could Unlock Additional $100 Billion in Economic Growth, According to New Report

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 "Modernizing outdated infrastructure rules is key to the United States winning the global race to 5G and unlocking the benefits that will come from the next generation of wireless."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.

SOURCE CTIA

Related Links

http://www.ctia.org