Wireless industry association CTIA issued a formal statement in response to a new report released by consulting firm the Brattle Group forecasting the economic impact of the International Trade Commission's recent order banning imports of mobile devices with some Qualcomm chips. "CTIA-The Wireless Association is deeply concerned that the ITC order banning new models of wireless broadband handsets will cause unprecedented economic harm to tens of millions of American wireless consumers, and because of that we urge President Bush to veto the order," writes CTIA president and CEO Steve Largent. "The Brattle Group analysis concludes that the ITC order will cause direct economic harm to U.S. consumers and producers estimated to range between $4.3 and $21.1 billion, and will cause billions more in lost productivity across the U.S. economy."
According to the Brattle Group report--commissioned by Qualcomm--direct economic harm to consumers alone could be as high as $17.7 billion, depending on the duration of the ITC ban. The report also estimates the FCC's upcoming spectrum auction could suffer lost revenues up to $1.4 billion. "Beyond the telecommunications sector, the ITC decision will cause substantial harm to the entire U.S. economy," Largent continues. "The Brattle Group concludes that the effect of the ITC order will spill over to other dynamic sectors, reducing U.S. productivity and resulting in several billion dollars in additional GNP losses. The ITC order is particularly troubling because it allows a private patent dispute to inflict unprecedented public harm upon innocent third parties. Under the statutory scheme devised by Congress, the Administration is the last line of defense for protecting the public from these massive economic damages. We strongly urge the Administration to disapprove the ITC order."
President Bush has until August 6 to veto the ITC ban. The Brattle Group report is available here.
For more on the CTIA statement:
- read this release
- Qualcomm rejects Broadcom settlement offer