major employer—communications services

Telecommunications is a growth business. Although markedly reduced investment in some parts of the sector (following the bubble years of the late 1990s) may have given an impression of low growth in the long run, a longer-term view taking into account the need for humans and machines to communicate suggests that telecommunications will continue to grow apace, as evidenced by the ongoing expansion of wireless and broadband access services throughout the world. Telecommunications is also a key enabler of productivity across the U.S. economy and society.6 Not only is telecommunications an industry in itself, but it also benefits nearly every other industry. In the 1990s the U.S. GDP grew rapidly, and the U.S. economy was among the strongest in the world. It is widely believed that the Internet economy played a significant role in this success. Today, however, new wireless applications, low-cost manufacturing innovations, and handset design are some of the areas in which the Asian countries are outinvesting the United States in R&D and are seeing resulting bottom-line impacts to their economies. For the United States to compete in the global marketplace—across industries—it needs the productivity that comes from enhancements in telecommunications. If the telecommunications infrastructure in the United States were to fall significantly behind that of the rest of the world, the global competitiveness of all other U.S. industries would be affected. Conversely, the growth in U.S. productivity has been based in part on a telecommunications infrastructure that is the most advanced in the world.

U.S. leadership in telecommunications did not come by accident—success at the physical, network, and applications levels was made possible by the U.S. investment in decades of research and the concomitant development of U.S. research leadership in communications-related areas. Telecommunications
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