A recent survey clearly depicts that the spread of 3G mobile networks in a country is linked with an increase in GDP and productivity.
In a report ‘What Is the Impact of Mobile Telephony on Economic Growth?’ from a survey of 14 countries by GSMA/Deloitte using Cisco data, a 10 per cent rise from 2G to 3G penetration was found to increase GDP per capita growth by 0.15 percentage points.And a doubling of mobile data use led to an increase of 0.5 percentage points in the GDP per capita growth rate, on average.
In countries where the level of mobile data consumption per 3G connection is comparatively higher, the growth was even more marked, as in Russia, the UK and South Korea, which saw GDP per capita growth of up to 1.4 percentage points.
Conversely, the effect is more limited for countries where mobile data usage is currently less prevalent, such as China, India, Mexico and South Africa.
“This study is an important addition to the growing body of empirical evidence demonstrating the impact of broadband on economic growth,” said Dr Robert Pepper, Vice President, Global Technology Policy, Cisco.
“As people around the world increasingly connect to the Internet via multiple wireless devices to use rich content anytime, anywhere, it is creating a deluge of data that is changing the way we work, live and play. The fact underscores the need for increased investment in wireless networks as well as for government policies to foster that investment, including the allocation of additional spectrum.”, he added.
The increase in 3G connections, supported by the proliferation of data-enabled devices that allow mobile Internet connectivity, has led to a massive growth in the use of mobile data. Total mobile data usage has more than doubled on average every year from 2005 to 2010 in each of the 96 countries in the sample. In Western European countries, it grew by 350 per cent.
In a report ‘What Is the Impact of Mobile Telephony on Economic Growth?’ from a survey of 14 countries by GSMA/Deloitte using Cisco data, a 10 per cent rise from 2G to 3G penetration was found to increase GDP per capita growth by 0.15 percentage points.And a doubling of mobile data use led to an increase of 0.5 percentage points in the GDP per capita growth rate, on average.
In countries where the level of mobile data consumption per 3G connection is comparatively higher, the growth was even more marked, as in Russia, the UK and South Korea, which saw GDP per capita growth of up to 1.4 percentage points.
Conversely, the effect is more limited for countries where mobile data usage is currently less prevalent, such as China, India, Mexico and South Africa.
“This study is an important addition to the growing body of empirical evidence demonstrating the impact of broadband on economic growth,” said Dr Robert Pepper, Vice President, Global Technology Policy, Cisco.
“As people around the world increasingly connect to the Internet via multiple wireless devices to use rich content anytime, anywhere, it is creating a deluge of data that is changing the way we work, live and play. The fact underscores the need for increased investment in wireless networks as well as for government policies to foster that investment, including the allocation of additional spectrum.”, he added.
The increase in 3G connections, supported by the proliferation of data-enabled devices that allow mobile Internet connectivity, has led to a massive growth in the use of mobile data. Total mobile data usage has more than doubled on average every year from 2005 to 2010 in each of the 96 countries in the sample. In Western European countries, it grew by 350 per cent.
