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Economic Impact of Radio '95 |
1. Introduction
This study by National Economic Research Associates (NERA) and Smith System Engineering (Smith) for the Radiocommunications Agency (RA) updates and extends an earlier study carried out by NERA and Smith on "The Economic Impact of the Use of Radio
in the UK". Using the same approach as was applied in the earlier report, estimates of the impact of radio use in terms of GDP, consumer and producer surplus, employment and exports have been calculated using more recent data and for a larger number of services. This study also presents estimates of the potential impact of digital terrestrial broadcasting (TV and radio) in terms of GDP and employment creation over the next 5 to 10 years.
Five case studies examining a number of service specific issues have been undertaken:
private business radio: the market
positioning of PBR, the relative efficiency of different mobile services and the potential
for improving the management of PBR spectrum are addressed;
public paging: the market positioning of
public paging relative to competing mobile services is examined;
1.5 GHz fixed links: the consequences for
current users of this band of migration in order to make way for new services are
assessed;
7.5 GHz fixed links: the costs to users
of congestion are estimated;
mobile satellite services: the
implications for the UK of having Inmarsat located here have been estimated.
Finally, we have updated the comparison of radio use in the UK with that elsewhere for international broadcasting, aeronautical services, satellite services, mobile telephony and radio in the local loop.
An important feature of the current study (as compared with the previous one) has been the much wider consultation with industry, in order to collect data and discuss our analysis. Ultimately the quality of many of the estimates we have produced depends on the extent to which industry has been prepared to give us the relevant information. We have benefited from discussions with 65 organisations which are listed in Appendix 1. We would like to thank all those who helped us in our work.
The structure of this report is as follows. In Chapter 2, estimates of economic impacts are given, while Chapter 3 contains the analysis of potential impacts of digital terrestrial broadcasting. The case studies are given in Chapter 4. Chapter 5 contains the international comparisons. Appendix 1 contains a list of organisations contacted. Appendix 2 and 3 contain supporting information for the analysis of digital broadcasting given in Chapter 3. Detailed data underlying the analysis of the PBR case study is given in Appendix 4.
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