Mobile Ecosystem Accounted for 4.4 Per Cent of Global GDP in 2016
BARCELONA, Spain-Tuesday, February 28th 2017 [ ME NewsWire ]
(BUSINESS WIRE)-- The number of unique mobile subscribers around the world will surpass 5 billion later this year, according to a new GSMA study. The 2017 global edition of the GSMA’s ‘Mobile Economy’ report reveals that the 5 billion-subscriber milestone will be achieved by mid-year 2017 and will increase to 5.7 billion by the end of the decade. By that point, almost three-quarters of the world’s population will be subscribed to a mobile service. Subscriber growth over this period will be driven primarily by large Asia markets such as India, which alone is forecast to add 310 million new unique subscribers by 2020.
The study also highlights the on-going shift to mobile broadband networks and smartphones, paving the way towards the 5G era, and the mobile industry’s growing contribution to the global economy, jobs and social development.
“Mobile is a global platform that today supports two-thirds of the world’s population, delivering the connectivity and infrastructure that is powering new digital economies and addressing socioeconomic challenges,” said Mats Granryd, Director General of the GSMA. “Our latest Mobile Economy report reveals how the near ubiquity of smartphones and high-speed connectivity is enabling innovation in areas such as artificial intelligence and driving the digital transformation. Mobile operators have invested over a trillion dollars in their networks since 2010 and will invest a further $700 billion over the remainder of the decade as we enter the 5G era.”
4G Expands Across The Globe – 5G Set To Launch
By the end of 2016 there were 4.8 billion unique mobile subscribers and 7.9 billion SIM connections worldwide1. More than half of connections (55 per cent) were running on mobile broadband (3G/4G) networks, which are forecast to account for almost three-quarters of connections by 2020. The proportion of 4G connections alone is forecast to almost double from 23 per cent to 41 per cent by the end of the decade, a result of ongoing investments in 4G networks by operators. At the end of 2016, 580 4G (LTE) networks had been launched across 188 countries, providing 4G coverage to approximately 60 per cent of the global population.
Looking further ahead, the study predicts that the first commercial 5G networks (based on LTE Release 15) will launch in 2019 and will provide coverage to a third of the world’s population by 2025. The number of 5G connections is forecast to reach 1.1 billion by that time.
Supporting Economic Growth – And Delivering the Global Goals
It is calculated that mobile technologies and services accounted for 4.4 per cent of global GDP in 2016, equivalent to around $3.3 trillion of economic value2. This is forecast to increase to more than $4.2 trillion by 2020, or 4.9 per cent of projected global GDP, as countries around the world continue to benefit from the improvements in productivity and efficiency made possible by mobile technology. The mobile ecosystem directly and indirectly supported 28.5 million jobs in 2016, a figure expected to increase to 30.9 million by 2020.
The mobile sector is also making a growing contribution to public sector funding. It is forecast that the industry will contribute $500 billion in the form of general taxation in 2020, up from $450 billion last year. This does not include government revenue raised via spectrum auctions, which totalled almost $19 billion in 2016.
The report also highlights the leading role the mobile industry is playing in meeting the UN Sustainable Development Goals (SDGs)3, particularly in areas such as financial inclusion (supporting SDG 1), health (SDG 3), gender equality (SDG 5) and infrastructure (SDG 9). Mobile networks are also pivotal in extending internet access to as much of the world’s population as possible. The number of individuals accessing the internet over mobile devices has doubled over the past five years to 3.6 billion, and will rise to 4.7 billion, equivalent to 60 per cent of the global population, by 2020.
“Mobile technology provides access to the tools and applications that address a wide range of socioeconomic challenges as well as enabling new technologies and innovations to build more efficient and environmentally sustainable societies,” added Granryd. “The GSMA and its members are united in working to achieve the SDGs across the world, leveraging the power of mobile networks to accelerate this journey in a way that no other technology can.”
The new report ‘The Mobile Economy 2017’ is authored by GSMA Intelligence, the research arm of the GSMA. To access the full report and related infographics, please visit: http://www.gsma.com/mobileeconomy/.
About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting nearly 800 operators with almost 300 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces industry-leading events such as Mobile World Congress, Mobile World Congress Shanghai, Mobile World Congress Americas and the Mobile 360 Series of conferences.
For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.
1 A unique mobile subscriber represents an individual that can account for multiple SIM connections
2 GDP contribution includes direct and indirect contribution from mobile operators (0.9%); related industries e.g. device manufacturers and infrastructure vendors (0.5%); indirect contribution (0.6%); and productivity improvements (2.5%).
3 The United Nations member states adopted a set of 17 Sustainable Development Goals (SDGs) in September 2015. The SDGs set a number of targets, including ending poverty, halting climate change, and fighting injustice and inequality, by 2030. http://www.gsma.com/betterfuture/
For the GSMA
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GSMA Press Office
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