ECONOMIC CONTRIBUTION OF TELECOMMUNICATION COMPANIES SERVING GREATER MN

Residents of Greater Minnesota receive telecommunications services from a variety of providers; and this industry is undergoing
rapid change and evolution. Increasing challenges and pressures facing the telecommunications industry has led the Minnesota Telecommunications Alliance (MTA) to pose the question of “What is  the economic contribution of telecommunication companies serving Greater Minnesota”. The Center for Rural Policy and Development provided the MTA with assistance in answering this question.

In 2011, the University of Minnesota Extension  conducted a survey of the members of the MTA. This study focuses on the economic contribution of telecommunication companies with customers in Greater Minnesota. The survey results were used to calculate the economic contribution of the industry. Results indicate that the total estimated economic contribution of the telecommunications industry serving Greater Minnesota, in 2011, was $1.3 billion.

As a partner/sponsor of this publication, the Center for Rural Policy and Development is proud to provide the full report HERE.

 

GREATER MINNESOTA’S LOCAL TELEPHONE INDUSTRY:  REPORT SUMMARY

The Center for Rural Policy and Development has collaborated with the University of Minnesota Extension Center for Community Vitality to prepare a summary of Greater Minnesota’s Local Telephone Industry for the Minnesota Telecom Alliance.

Click HERE for a downloadable version of the Talking Points.

Researchers with the University of Minnesota Extension Center for Community Vitality invited the 48 telecommunications holding companies serving customers in Greater Minnesota to participate in a confidential survey; 16 responded. Through the data collected, they were able to estimate the industry’s contribution to the state’s economy in 2011 in terms of expenditures, employment and taxes.

·Direct effects: The telecommunications industry serving Greater Minnesota directly spent an estimated $870 million in 20 These expenditures included operations, wages and salaries, and capital improvements.

·Workforce: The telecommunications industry serving Greater Minnesota employed an estimated 4,500 individuals in 2011. Of the industry’s expenditures, an estimated $370 million went to labor. Telecom companies also contracted directly with companies employing another estimated 1,800 workers, paying them an additional estimated $80 million.

·Indirect effects: Suppliers employed an estimated 600 people in 2011 to provide goods and services directly to the telecommunications industry. Many of the suppliers to telecom companies in Greater Minnesota are also located in Greater Minnesota.

·Spin­off effects: Spending by telecom companies and their employees produced spin-off spending (indirect and induced effects) in the Minnesota economy. These indirect and induced effects are estimated to have contributed an additional $440 million in spending within the economy, including an estimated $150 million in labor income.

·Total effects: The total economic contribution of the telecom industry in 2011 — direct + indirect + induced effects — was an estimated $1.3 billion, including $600 million in labor income to an estimated 10,300 workers.

·While taxes are not considered in the economic contribution study, telecommunication companies paid an estimated $30 million in property, sales, and income taxes in 2011.

Researchers    
with    
the    
University    
of    
Minnesota    
Extension    
Center    
for    
Community    
Vitality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

invited    
the     
48    
telecommunications    
holding    
companies 1     
serving    
customers    
in    
Greater

Minnesota    
to    
participate    
in    
a    
confidential    
survey ;    
16    
responded    .    
Through    
the    
data    
collect         ed,

they    
were    
able    
to    
estimate    
the    
industry’s    
contribution    
to    
the    
state’s    
economy    
in    
2011    
in

terms    
of    
expenditures,    
employment    
and    
taxes.
 Direct    
effects :    
The    
telecommunications    
industry    
serving    
Greater    
Minnesota    
directly    
spent
an    
estimated    
$870    
million     
in    
2011.    
These    
expenditures    
included    
operations,    
wages    
and

salaries,    
and    
capital    
improvements .

 Workforce:    
The    
telecommunications    
industry    
serving    
Greater    
Minnesota    
employed    
an

estimated    
4,500    
individuals     
in    
2011.  Of    
the    
industry’s    
expenditures,    
an    
est imated    
$370

million    
went    
to    
labor       .    
Telecom    
companies    
also    
contracted    
directly    
with    
companies

employing    
another     
estimated1,800    
workers ,    
paying    
them    
an    
additional    
estimated    
$80

million.
 Indirect    
effects:    
Suppliers    
employed    
an    
estimated    
600    
people     
in    
2011        
to    
provide    
goods

and    
services    
directly    
to    
the    
telecommunications    
industry .    
Many    
of    
the    
suppliers    
to    
t elecom
companies    
in    
Greater    
Minnesota    
are    
als      o    
located    
in    
Greater    
Minnesota.
 Spin-­off    
effects:Spending    
by    
telecom    
companies    
and    
their    
employees    
produced    
spin -­‐off

spending    
( indirect    
and    
induced    
effects      )    
in    
the    
Minnesota    
economy.    
These    
indirect    
and

induced    
effectsare    
estimated    
to    
have    
contributed    
an    
additional    
$440    
million     
in    
spending

within    
the    
economy,    
including    
an    
estimated    
$150    
million     
in    
labor        
income.

 Total    
effects :    
The    
total    
economic    
contri         bution    
of    
the    
telecom           
industry     
in    
2011    
—    
direct    
+

indirect    
+    
induced    
effects    
— was    
an    
estimated    
$1.3    
billion ,    
including    
$600    
million    
in    
labor

income    
to    
an    
estimated    
10,300    
workers .

 While    
taxes    
are    
not    
considered    
in    
the    
economic    
contribution    
study,    
telecommunication

companies    
paid    
an    
estimated    
$30    
million    
in    
property,    
sales,    
and    
income    
taxes    
in    
20