Barcelona: The mobile industry is a cornerstone of the global economy. In 2014, the mobile industry contributed US$3 trillion to the world’s economy, equivalent to 3.8 per cent of global Gross Domestic Product (GDP), according to a major new GSMA report published at Mobile World Congress on Thursday.
By 2020, it is estimated that the contribution from the industry will increase to US$3.9 trillion, representing 4.2 per cent of projected global GDP by this point.
Investment levels are forecast to reach a cumulative US$1.4 trillion in the six years from 2015 through to 2020.
“In 2014, mobile operators invested around US$216 billion in capital expenditure (Capex), a nine per cent year-on-year increase. Mobile operators are making significant investments in next-generation mobile networks to meet capacity demands and expand coverage reach.
“The mobile industry directly employed 12.8 million people globally in 2014 and indirectly supported a further 11.8 million jobs, bringing the total to 24.6 million. By 2020, this figure is forecast to reach 28.7 million, with 15.3 million men and women directly employed by the industry. Even without factoring in spectrum fees – which generated more than US$14 billion in revenue for governments worldwide last year – it is estimated that the mobile industry contributed US$411 billion to public finances in 2014 via taxation and social security contributions. This public funding contribution is forecast to rise to US$465 billion by 2020.
“Operators require a supportive regulatory framework in order to deliver this new digital ecosystem being built on mobile broadband networks, smartphones and other connected devices,” Anne Bouverot, Director General of the GSMA, added.
“Our new report published today includes a number of steps that policymakers can take to stimulate investment, competition and innovation in the mobile-powered digital economy, including reducing constraints on market-driven restructuring; ensuring operators have access to sufficient spectrum; and supporting operator efforts to expand mobile network coverage into rural areas in a sustainable way.”