Mobile communications is fundamental for the economic growth of developing nations and carries the potential to change people’s lives. A new study undertaken by Deloitte for the Telenor Group provides hard fact figures demonstrating the mobile industry’s impact on six transitional and emerging economies, Ukraine, Serbia, Bangladesh, Malaysia, Pakistan, and Thailand.
The study demonstrated that by increasing GDP and generating employment opportunities both in the mobile communications sector and the wider economy, mobile telephony made a positive impact to economic welfare in all the six countries studied.
In a developing country, an increase of 10 percentage points in mobile penetration will lift that country’s annual economic growth rate by 1.2 percentage points, the study found. That represents a major uplift – if the proportion of people with a mobile phone in an economy, growing at 4% a year, rises from 10% to 20%; it would boost the economic growth rate to 5.2% a year.
In all six countries, the study found that the mobile industry plays a key role in the economic development by creating employment, contributing to GDP, and creating an infrastructure that allows the economy to further develop and acting as a core source of foreign direct investment (FDI).
"Investment in telecommunications helps to increase investor confidence in other areas of the economy and therefore contributes to attracting FDI," said Jan Edvard Thygesen, Executive President, Telenor and Head of Region Central and Eastern Europe.
In Ukraine, Deloitte estimates that the mobile industry contributes UAH 22 billion to the national economy in 2007, representing 5.9% of total GDP. This number is strongly consistent with the findings from the other five markets in which the study has been undertaken, ranging from 3.7% in Malaysia to 6.2% in Bangladesh. The industry is also a significant source of employment, directly and indirectly employing almost 120,000 Ukrainians full-time in 2007.
Another obvious area where mobile communications contributes to the economy is through improving efficiency. In all the six markets studied, it was found that access to mobile communications can improve information flows; increase work flexibility; and promote business in previously underserved rural areas.
"By providing the infrastructure and services necessary for businesses, we believe that the mobile communications sector contributes to improving the international competitiveness of these markets," said Jan Edvard Thygesen.
The mobile communications sector in itself also makes an important contribution to economic and social welfare, for instance through connecting people in remote areas to basic utilities such as banking and health care.
"As emerging economies continue to develop further, the need for advanced communications infrastructure becomes increasingly important," said Chris Williams, telecommunications Partner at Deloitte. "The next step ahead will be to provide access to broadband via mobile, something which is likely to increase the social and economic impact of the mobile industry even more."
"To continue and further the positive impact of mobile communications for consumers and the developing economies as a whole, we recommend that the mobile operators, regulators and Governments work closely to ensure that effective and sustained frameworks for competition are put into place. This will support ongoing long-term investment in the mobile sector and hence the economy as a whole," Williams added.
For media inquiries, please contact:
Anastasiya Gogoleva, Communications Director, Telenor Ukraine
tel: +38 067 467 6666 e-mail: anastasiya.gogoleva@telenor.com
Dag Melgaard, Vice President Group Communications, Telenor ASA
tel: +47 901 92 000, e-mail: dag.melgaard@telenor.com
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