HUDSON INSTITUTE
THE VALUE OF CELLULAR TECHNOLOGY
1
POLICY MEMO
The Value of Cellular Technology
KIRTI GUPTA AND URŠKA PETROVČIČ, FORUM FOR INTELLECTUAL PROPERTY
October 2021
Cellular technologies, such as those embodied in the third
generation (3G), fourth generation (4G), and fth generation
(5G) of cellular standards, have provided the foundation for a
thriving mobile ecosystem that has beneted consumers and
businesses all over the world. In the past 20 years, the number
of mobile connections has grown almost 10-fold, reaching an
ever-growing percentage of the global population. In 2017,
the number of mobile connections surpassed the number
of people on the planet.
1
In 2019, mobile technologies and
services added $4.8 trillion of economic value to the global
economy, and the mobile ecosystem employed (directly and
indirectly) 30 million people.
2
Although cellular technology has already transformed all
facets of our society, the deployment of 5G will bring even
broader and more radical changes. By connecting everything
and everywhere, 5G will help us realize the full potential of
connectivity and usher in the era of smart transportation, smart
cities, smart factories, and smart homes. The new products
and services enabled by 5G will change all aspects of our
daily life, such as health care, energy, agriculture, automotive,
manufacturing, and retail, among others. This will not only
benet consumers and businesses, but society as a whole.
Cellular technologies are central to this revolution. Without
advances in the cellular space, none of the economic and
societal benets we see in the connected world would be
possible. Therefore, it is important to understand how cellular
technologies are developed and deployed, and what impact
they have on the economy and on society more broadly. It is
also important to understand why fairly compensating cellular
innovators is essential to maintain a sustainable system
where new technologies can be developed and brought to
consumers.
I. The Development and Deployment
of Cellular Technologies
Foundational cellular technology is developed and deployed
through a lengthy process. As Figure 1 shows, the entire
process—from initial technology development to nal
implementation into a product—can be divided into three
main stages, each involving different stakeholders and
requiring different types of investments. It typically takes
a long time—often more than 10 years—from the time of
early investment in research and development (R&D) to the
stage where gains of a newly developed technology can be
properly realized.
