The impact of mobile on economic growth
A report for the GSM Association
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).
In developed markets, recent years have seen booming usage of mobile data services accessed via smartphones, tablets and dongles. Mobile data has changed consumer expectations for wireless services products and has transformed the way in which people connect and work, which has the potential to further impact economic development.
For developing markets, basic mobile services still dominate and mobile data is the next wave of advancement. As such, this study considers the key role that adoption of this technology has played in enhancing economic growth through increasing productivity.
Key stats include:
- 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.