UK: Mobile broadband boosts economy, report reveals

04 Octobre 2017

LONDON, UK, October 4 (Infosplusgabon) - In a report conducted in collaboration with the Imperial College of London, Ericsson Research has confirmed that when a country adopts mobile broadband, the result is solid overall economic development.

Entitled 'How Important Are Mobile Broadband Networks for Global Economic Development?', the report examines data from 135 countries, according to a statement issued on Tuesday by Ericsson.

The report reveals that as mobile broadband penetration increases by 10 percent, it causes a 0.6-2.8 percent rise in Gross Domestic Product (GDP).  "That translates to an equivalent of approximately US$500–2000 billion, worldwide in 2016."

It noted that previous reports have examined fixed broadband, and researchers have only been able to estimate its effect on economic growth.

"This study, on the other hand, has been able to conclude that the introduction of mobile broadband has an immediate positive effect on a country’s economy, and a longer-term knock-on effect as mobile broadband gradually spreads to different economies."

Harald Edquist, Master Researcher in Macroeconomics at Ericsson Research and one of the report authors, says: “Many countries in the developing world have used mobile broadband technology to leapfrog in their economic development in the past 10–15 years.

"I believe that if these countries, and others, continue to invest wisely in mobile broadband, they will have an excellent opportunity to continue to reap the benefits of continuous productivity improvements and new economic opportunities that simply would not be possible without mobile broadband.”

The report noted that mobile broadband networks have spread rapidly, and are set to continue doing so.

The Ericsson Mobility Report (June 2017), states that at the end of 2016, around 3.2 billion subscribers (out of the world’s total population of 7.4 billion) had access to the Internet via mobile broadband technology. It is forecast that an additional 2.6 billion subscribers will have mobile broadband Internet access by 2022.

The report said a GSMA study shows that in Africa, limited network coverage remains a key barrier to mobile internet adoption.

Presently, mobile broadband networks cover around 50% of the population, meaning that 600 million people in the region do not have access to a mobile broadband service. The GSM Association is a trade body that represents the interests of mobile network operators worldwide.

To ensure efficient mobile broadband adoption, stable and efficient policies and regulations are essential for mobile operators to have the best conditions to roll out mobile broadband networks in underserved areas. Private investment depends heavily on the regulatory climate.

FIN/INFOSPLUSGABON/PLM/GABON 2017

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