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What is the impact of mobile telephony on economic growth?

What is the impact of mobile telephony on economic growth?The mobile telecom sector continues to offer unprecedented opportunities for economic growth in both developing and developed markets, and mobile communication services have become an essential part of how economies work and function.

Deloitte and the GSMA have released the first comprehensive assessment of the incremental benefits of next generation mobile telephony services, such as 3G technology and mobile data services, and its impact on economic growth.  The report  provides the first estimates of the impact of mobile data usage on GDP growth in developed and developing markets, using information on mobile data provided by Cisco Systems based on their Visual Network Index (VNI).

Key highlights

  • A doubling of mobile data use leads to a growth in the GDP per capita growth rate of 0.5 percentage points.
  • Countries characterised by a higher level of data usage per 3G connection have seen an increase in their GDP per capita growth of up to 1.4 percentage points.
  • A 10% rise in 3G penetration increases GDP per capita growth by 0.15 percentage points. In developing markets, a 10% expansion in mobile penetration increases productivity in the long run by 4.2 percentage points.

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If you would like to discuss any of the issues covered in the report in more detail please contact Chris Williams

Highlights

  • GSMA and Deloitte release comprehensive research into the impact of mobile telephony on economic growth
    Read our news release.

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