A report by Ericsson and Imperial College London has found that rising mobile broadband penetration significantly boosts national economies. The study analyzed data from 135 countries to quantify how increased access to mobile internet affects GDP.
The researchers concluded that a 10 percent rise in mobile broadband penetration corresponds to a GDP increase of roughly 0.6 to 1.6 percent. In 2016 terms, that effect translated into an economic impact ranging from about $500 billion to $2 trillion.
Titled “How Important Are Mobile Broadband Networks for Global Economic Development?”, the paper builds on earlier research into the economic effects of fixed broadband by specifically examining the role of mobile broadband networks.
“Many countries in the developing world have used mobile broadband technology to leapfrog their economic development in the past 10 to 15 years,” says Harald Edquist, a researcher at Ericsson and co-author of the report. He adds that continued, smart investment in mobile broadband will offer ongoing productivity gains and fresh economic opportunities that would be difficult to achieve otherwise.
Ericsson, one of the world’s largest telecommunications vendors, tracks the global adoption of mobile broadband. Its June 2017 Mobility Report found that by the end of 2016, about 3.2 billion of the world’s 7.5 billion people had mobile broadband access.
The same Mobility Report projects that an additional 2.6 billion people will gain mobile internet access by 2022. Africa is highlighted as a major growth market: a GSMA study noted that networks currently reach roughly half of the continent’s population, leaving large opportunities for expansion.
Major technology companies, including Facebook and Google, are pursuing innovative solutions to expand internet access in underserved regions. According to Ericsson’s analysis, a 50 percent increase in mobile broadband penetration across Africa could increase the continent’s GDP by as much as eight percent.
Ericsson plans to present these findings alongside other research during events held during UN Week in New York, from September 16 to 22.
Are you surprised by the scale of mobile broadband’s impact on GDP growth? Share your thoughts in the comments.