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[Satellite News 11-26-12] Increases in the use of mobile data have a positive effect on the GDP-per-capita growth rates across 14 countries, according to recent studies released by the GSMA in cooperation with the Deloitte firm, whom added that the doubling of mobile data usage could provide as much of a 0.5 percentage-point boost in those countries.
GSMA Chief Government and Regulatory Affairs Officer Tom Philips said that a 10 percent rise in mobile data from 2G to 3G penetration increases GDP per capita growth by 0.15 percentage points and a 10 percent expansion in mobile penetration increases productivity by 4.2 percentage points in developing markets.
“Total mobile connections will stand at 6.8 billion with mobile subscriber penetration at 45 percent by the end of 2012,” Philips said in the report. “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, mobile data usage grew by 350 percent.”
According to the research, the impact of increased mobile data usage is stronger in countries where the average level of mobile data consumption-per-3G connection is comparatively higher, such as Russia, the United Kingdom and South Korea. The studies show that these countries experienced an increase in their GDP per capita growth of up to 1.4 percentage points.
“The effect is more limited, however, for countries where mobile data usage is currently less prevalent, such as China, India, Mexico and South Africa,” said Phillips.
The report from GSMA and Deloitte drew from research of data usage and economic growth across 14 countries 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 penetration across 96 countries.
“This study is an important addition to the growing body of empirical evidence demonstrating the impact of broadband on economic growth,” Cisco Vice President of Global Technology Policy Robert Pepper said in a statement.
Deloitte Telecommunications Partner Chris Williams said the report suggests that rather than look to capture value from the mobile industry via sector specific taxation and high regulatory fees, government could seek to incent investments in mobile broadband networks, which will deliver significant economic and social benefits.
“The development of data services have the potential to drive economic development in the same way in which voice services have in previous generations,” Williams said in the report.
The GSMA and Deloitte research follows the promising results of a mobile data report published last week by Juniper Research, which showed that roaming revenues would grow by 21 percent per year between 2012 and 2017, reaching over $35 billion in 2017.
In the report, titled “The new report, Mobile Roaming: Challenges, Opportunities & Market Forecasts 2012-2017,” the analysis firm said that the mobile data growth would be driven by an increasing number of active data roamers using data services while abroad.
In recent years, satellite operators and service providers have leveraged opportunities in the healthy mobile data sector. While Juniper Research analysts feel just as optimistic about the future of mobile data, its newest report also notes that the number of silent data roamers not actively using any data services still fear what they call “bill shock,” as this continues to be markedly higher when compared to silent voice roamers.
Juniper Research Analyst and Report Author Nitin Bhas said that silent roamers exercise caution or do not use voice and data services while roaming and represent a non-user segment.
“Data roaming is the next big growth driver,” Bhas wrote in the report, “Powered by the proliferation in smartphones and a dramatic growth in data usage, data roaming is being seen as a key growth driver for operators, albeit with cost-effective packages coupled with subscriber control over usage.”
The report found that the majority of mobile customers were using voice services when roaming abroad, but this offered network operators little opportunity to add value or enhance services. “Data roaming, on the other hand, provided operators with the opportunity to convert ‘non data’ roamers to become active data roamers by the introduction of data bundles and roaming plans,” said Bhas.
Juniper Research forecasts that SMS roaming revenues would remain a modest proportion of the sector’s growth. “As data roaming costs are further reduced and smartphone owners find so-called Over-the-Top (OTT) services – such as eBuddy and Whatsapp – a cheaper alternative, the average spend per SMS roaming will decline over the forecast period,” Bhas added.
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