Are Cell Phones a Major Economic Boost for the U.S.?
March 31, 2008 5:38 AM | Interesting | Comments (2)
Cell phones play a much bigger role in helping Americans get work, make money and respond in emergency situations than previously was thought to be the case, according to a first-of-its-kind study by Nicholas P. Sullivan, author of You Can Hear Me Now: How Microloans and Cell Phones Are Connecting the World’s Poor to the Global Economy and a visiting scholar at the Massachusetts Institute of Technology (MIT). Released today by the independent New Millennium Research Council (NMRC) think tank, the Sullivan report concludes that providing cell phones to the 38 percent of America’s 45 million poorest households now without them, including millions of seniors, Hispanics, African-Americans and rural residents, could help them get work or make money worth $2.9 billion-$11 billion. Released today by the independent New Millennium Research Council (NMRC) think tank, the Sullivan report concludes that providing cell phones to the 38 percent of America's 45 million poorest households now without them, including millions of seniors, Hispanics, African-Americans and rural residents, could help them get work or make money worth $2.9 billion-$11 billion. |  |
Titled "Cell Phones Provide Significant Economic Gains for Low-Income American Households," the groundbreaking Sullivan report is based on two urveys: a scientific poll by Opinion Research Corporation (ORC) of 1,005 Americans and a statistically large online sampling of 110,000 prepaid cell phone users.
The report is the first in the U.S. to zero in on potential economic and public safety benefits to those in the bottom two quintiles of household income (less than $35,000), who are much less likely to own cell phones. According to the Sullivan report, those who do not now own a cell phone tend to be older (37 percent are retired), less educated (29 percent have a high school education or less), low income (38 percent make less than $35,000 a year) or unemployed (30 percent).
In addition to the striking potential for more employment and wealth accumulation among low-income Americans, the Sullivan report finds a much stronger "safety blanket" effect from cell phones than commonly is assumed to be true. Majorities from every major demographic segment in the U.S. say the cell phone is "extremely important" for "emergency use," and prefer a cell phone to a landline phone in emergency/crime situations. About half of Americans (48 percent) have used their phone to call or text during an emergency situation, a fifth (20 percent) have received an emergency call or text on their cell phone, and nearly a third (32 percent) have bought a cell phone for a relative to use in emergency situations, according to the ORC survey. Two telling signs showing the "safety blanket" effect of cell phones: Nearly three out of five Americans (58 percent) say if they had to choose only one phone, it would be a cell phone rather than a landline phone; and, when asked to choose the most important phone in an emergency situation, Americans now favor cell phones over landlines by a more than
three-to-one margin.
Report author Nicholas P. Sullivan said: "Millions of Americans who are most in need are missing out today on the economic gains that other Americans attribute to their cell phones. The overall conclusion in this study is that the cell phone is extremely important to Americans for personal safety, and a huge boon to an individual's potential economic productivity and earning power. The cell phone is particularly important to blue collar, minority, less educated and low-income segments of Americans, even though those groups are far less likely to own cell phones."
Sullivan also is the author of the new book, "You Can Hear Me Now: How Microloans and Cell Phones Are Connecting the World's Poor to the Global
Economy" (Jossey-Bass, 2007).
For full report go to http://www.thenmrc.org.
Cell Phones Battle Poverty
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Comments
Posted by: Cell Phone Digest Editor | April 8, 2008 5:44 PM
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Posted by: Nicholas Sullivan | April 6, 2008 8:53 PM
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