-- by THI member Rafael Vela

A new study by economists Robert Shapiro of NDN and Kevin Hassett of AEI found significant job creation was spurred by the transition from 2G to 3G wireless in the four year period of 2007 through 2011.  The authors suggest further job growth and economic benefits from similar investment in new 4G technology.  Such investment would greatly benefit a Latino populace heavily dependent on wireless innovation.

“The Employment Effect of Advances in Internet and Wireless Infrastructure: Evaluating the Transitions from 2G to 3G and from 3G to 4G ,” finds that over 1.5 million new jobs were created between 2007 and 2011 by the adoption and use of new cell phones utilizing 3G.  Shapiro and Hassett estimate that a similar, rapid transition to 4G mobile broadband could create more than 231,000 jobs in a single year.

The economic benefits to Latinos from new 4G buildouts are obvious.  The broadband-inspired job growth occurred at a time when the private sector job market was contracting.  The projected 4G jobs offer opportunity to a Latino worker base whose employment rate lags far behind the nation’s as a whole.

The benefits of cheaper, up-to-date connectivity could be even greater. According to NDN President Simon Rosenberg, “widespread deployment of 4G technology could help the country achieve universal broadband service...  4G-enabled service could also provide a less costly way for lower and moderate-income Americans to access broadband.”

This last point is critical for Latino consumers.  53% of Latinos in this country use mobile broadband as their primary means of broadband connectivity, a number roughly 20 percentage points higher than for non-Hispanic whites.  Furthermore, Latino households pay more on average for their cell phone usage than other groups.  Lowering costs is critical for maintaining and growing Latino connectivity, but if those lower costs are not combined with access to 4G, Latino consumers could see a widening of the broadband gap.

For these reasons, I agree with Rosenberg’s conclusion that, “policies to support the full deployment of 4G, therefore, should be part of any national job creation and economic strategy.”  For Latinos, and all Americans, such investment promises more job creation, innovation and economic opportunity. 

Statement by Board Chair Gus West

December 9, 2011

The recent FCC staff analysis of the proposed merger between AT&T and T-Mobile was disappointing and failed to give proper weight to the facts and ignored the disproportionately negative impact that the failure of the deal would have on the Hispanic community.

November 3, 2011

The Honorable Max Baucus
Chairman Senate Finance Committee
511 Hart Senate Office Building
Washington, DC 20510

The Honorable Orrin Hatch
Ranking Member Senate Finance Committee
104 Hart Office Building
Washington, DC 20510

RE: Wireless Tax Fairness ACT (H.R. 1002, S. 543)

Dear Chairman Baucus and Ranking Member Hatch,

Senator Ron Wyden and Senator Olympia Snowe have introduced (S. 543) in the Senate, and we support the passage of this important legislation. The Wireless Tax Fairness Act of 2011 prohibits states or local governments from imposing any new discriminatory tax on mobile services, mobile service providers, or mobile service property (i.e., cell phones) for five years after the enactment of this Act. Similar legislation was passed by the House on November 1, with bi-partisan support.