The true value of mobile phones to developing markets

Telecommunications, Strategy & Analysis Article, mobile phones developing markets

Article at a glance:

The mobile phone has become a ubiquitous symbol of prosperity in many developing countries, but what is its true value to their economies?
A study of wireless markets in China, India, and the Philippines found that, for these countries, the economic impact of all wireless activity is significantly higher than its value to the wireless operators alone. Much of this value appears to come from the productivity gains and economic surplus that mobile-phone users enjoy.
Regulatory and industry players can amplify such gains, as well as the contributions that the wireless sector makes to GDP, by using strategies that encourage the spread of mobile phones.

This article contains the following exhibits:

Exhibit 1: Auxiliary players in Asian telecom markets contribute nearly as much to GDP as do wireless operators.
Exhibit 2: Historical and contemporary average revenues per user may be used to estimate the economic value that users derive from their wireless phones.

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Abstract

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