June 10, 2009

Mobile Communications Will Drive Economic Growth

At the GSMA's Leadership Summit, bringing together 400 CEOs, government ministers and officials, industry leaders today stressed the unique role that broadband, specifically mobile broadband, can play as an economic stimulus. Those leaders called for governments to support the rollout of mobile broadband services to drive economic growth.
The release of new spectrum for mobile broadband services in 2009 will ultimately add the equivalent of $211 billion to China's GDP, and could add the equivalent of $95 billion to India's GDP1, according to a new report by Professor Leonard Waverman and consultancy LECG for the GSMA, which represents the global mobile industry. The rollout of mobile broadband networks will create hundreds of thousands of jobs, encourage new businesses across the value chain, improve productivity and boost consumer spending.

As the mobile industry is one of the few parts of the private sector currently capable of providing an economic stimulus, governments need to ensure they adopt policies that encourage more investment in mobile services and networks. Wherever possible, governments should seek to create a stable regulatory environment, while licensing spectrum on the right terms to encourage spending on network infrastructure and services, stimulating economic growth.

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