-- 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.