China, India to account for 50% of global mobile subscriptions by 2020 – Study

Business News of Monday, 3 July 2017

Source: Ghana Business News

2017-07-03

Stu DyAccording to the report,Asia’s mobile ecosystem also supported approximately 16 million jobs in 2016

A new study by the global mobile industry organization, GSMA says China and India will account for half of all the mobile subscribers to be recorded in the world by the end of 2020.

According to the 2017 edition of ‘Mobile Economy: Asia Pacific’ report released last week, India will account for 27 per cent (206 million) and China, 21 per cent (155 million) of the approximately 753 million new mobile subscribers expected to be added globally by the end of 2020.

“The Asia Pacific region as a whole is forecast to increase from 2.7 billion unique mobile subscribers at the end of 2016 to 3.1 billion in 2020, accounting for two-thirds of global growth. The report also highlights how the region’s mobile industry will be a growing contributor to the Asia’s economy and social development over this period – and also play a pioneering role in 5G,” the report said.

The report indicates that subscriber growth in the Asia Pacific region will also mean that mobile penetration in the region (as a percentage of the population) will grow from 66 per cent in 2016 to 75 per cent in 2020.

However, the diverse nature of the region means that mobile penetration rates vary widely. Asia is home to four of the top five most penetrated markets in the world (Hong Kong, Japan, Singapore and Taiwan), but also some of the least penetrated, such as North Korea, it added.

The report notes that mobile broadband (3G and above) is now the dominant technology in the region, accounting for more than half of connections for the first time last year, adding that Asian markets such as China, Japan and South Korea are also driving the development of 5G mobile technologies. 5G connections (excluding IoT) are anticipated to reach 670 million in Asia Pacific by 2025, accounting for just under 60 per cent of global 5G connections by that point, it said.

It states further that mobile technologies and services contributed $1.3 trillion in economic value to the Asia Pacific economy last year, equivalent to 5.2 per cent of regional Gross Domestic Product (GDP).

“It is forecast that this contribution will increase to $1.6 trillion (5.4 per cent of GDP) in 2020 as countries benefit from the improvements in productivity and efficiency brought about by increased take-up of mobile services and adoption of new mobile technologies such as machine-to-machine (M2M),” the report said.

According to the report, Asia’s mobile ecosystem also supported approximately 16 million jobs in 2016, directly and indirectly, and made a substantial contribution to the funding of the public sector. It is estimated that the ecosystem made a tax contribution to the public finances of the region’s governments of around $166 billion last year.

It also highlights the major shift in consumer behavior underway in Asia Pacific, triggered by rising smartphone and mobile internet adoption, improved affordability, and the increasing availability on locally relevant content.

This has led to a boom in mobile services in areas such as video, social media, e-commerce and financial services. Mobile internet penetration in Asia Pacific has doubled over the last five years, reaching approximately half of the regional population by the end of 2016.

“Asia’s mobile industry is also playing a key role in tackling various social and economic challenges as outlined by the United Nations Sustainable Development Goals (SDGs). The report highlights several case studies where mobile services are helping to eliminate poverty; improving health, education, gender equality and employment opportunities; helping to deliver safer cities; and addressing climate change and other issues,” the reported said.

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