Report

Australian mobile telecommunications industry: economic significance and state of the industry

18 Jul 2007
Description

The mobile telecommunications industry contributes substantially to the Australian economy. In addition to its direct contributions, it drives productivity gains throughout the economy according to this 2007 Access Economics report.

The mobile telecommunications industry contributes substantially to the Australian economy. In addition to its direct contributions, it drives productivity gains throughout the economy.

This characteristic of the mobile telecommunications industry contrasts with other key sectors such as mining, which makes a significant direct contribution to the economy but much smaller indirect contributions.

The report says the direct contribution of the mobile telecommunications industry to the Australian economy in 2005-06 was $5.8 billion, with its share of value added to the whole communications industry found to be 24.9%.

Access Economics says the indirect or spill-over effects of mobile telecommunications on the broader Gross Domestic Product is estimated to be $6.4 billion – greater than the direct economic impact.

The ubiquity of mobiles has transformed the way businesses operate and their employees work in almost every industry and sector of the Australian economy. This means the economic impact of the mobile telecommunications industry encompasses its flow-on impacts on all other industries.

The report has also produced a forward estimate of the economy-wide benefits arising from mobile data use made possible by 3G networks. Given the current adoption trend, the report suggests the increasing uptake of 3G technology and increase in mobile data traffic could add an additional $1 billion to GDP by 2010.

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2007
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