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Telecommunications provides a technological foundation for societal communications. Communication plays a central role in the fundamental operations of a society—from business to government to families. In fact, communication among people is the essence of what distinguishes an organization, community, or society from a collection of individuals. Communication—from Web browsing to cell phone calling to instant messaging—has become increasingly integrated into how we work, play, and live.

 

Telecommunications enables participation and development. Telecommunications plays an increasingly vital role in enabling the participation and development of people in communities and nations disadvantaged by geography, whether in rural areas in the United States or in developing nations in the global society and economy.

 

Telecommunications provides vital infrastructure for national security. From natural disaster recovery, to homeland security, to communication of vital intelligence, to continued military superiority, telecommunications plays a pivotal role. When the issue is countering an adversary, it is essential not only to preserve telecommunications capability, but also to have a superior capability. There are potential risks associated with a reliance on overseas sources for innovation, technologies, applications, and services.

 

It is difficult to predict the future impact of telecommunications technologies, services, and applications that have not yet been invented. For example, in the early days of research and development into the Internet in the late 1960s, who could have foreseen the full impact of the Internet’s widespread use today?

The telecommunications industry is a major direct contributor to U.S. economic activity. The U.S. Census Bureau estimates that just over 3 percent of the U.S. gross domestic income (GDI) in 2003 was from communications services (2.6 percent) and communications hardware (0.4 percent)—categories that are narrower than the broad definition of telecommunications offered above. At 3 percent, telecommunications thus represented more than a third of the total fraction of GDI spent on information technology (IT; 7.9 percent of GDI) in 2003. In fact, the fraction attributable to telecommunications is probably larger relative to that of IT than these figures suggest, given that much of the GDI from IT hardware (particularly semiconductors) could apply to any of several industries (computing, telecommunications, media, and electronics, for example). If one assumes IT to be the sum of computers (calculating), computers (wholesale), computers (retail), and software and services, the total GDI for IT is $440 billion, compared to the total for telecommunications (communications hardware plus communications services) of $335 billion, making telecommunications’ contribution to GDI just under 80 percent of IT’s contribution to GDI

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