Feature Article

November 21, 2012

GSMA and Deloitte Release First Comprehensive Assessment to Reveal Incremental Benefits of Its Next-Generation Mobile Telephony Services

A few days ago, about the incremental benefits of next-generation mobile telephony services, such as 3G technology and mobile data services, and its impact on economic growth, the GSMA and Deloitte released the first comprehensive assessment. In developed and developing markets, the report “What Is the Impact of Mobile Telephony on Economic Growth?” provides the first estimates of the impact of mobile data usage on GDP growth.

Provided by Cisco Systems based on its Visual Networking Index (VNI), as well as Deloitte studies on the productivity impact of mobile in 79 countries and the impact of 3G penetrations across 96 countries, the report draws from research of data usage and economic growth across 14 countries.

"Development of data services has potential to drive economic development in the same way in which voice services have in previous generations. This report offers serious quantification of this impact and confirms industry expectations that the impact is significant," said Chris Williams, Deloitte telecommunications partner.

He added that for the development of mobile data, the report outlined key findings that policy makers need to consider to imply to its services.

In the GDP per capita growth rate across the 14 countries, a doubling of mobile data use leads to an increase of 0.5 percentage points. Countries characterized by a higher level of data usage per 3G connection have seen an increase in its GDP per capita growth of up to 1.4 percentage points. By 0.15 percentage points, a 10 per cent rise from 2G to 3G penetration increases GDP per capita growth . A 10 per cent expansion in mobile penetration increases productivity by 4.2 percentage points in developing markets.

Based on consumers moving from basic 2G connections to 3G connections, the report measures the impact on GDP growth. With consumers substituting a 2G connection with a 3G connection, this analysis of 96 developed and developing markets shows the positive effect.

Edited by Rich Steeves

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