Wireless Unbound: The Surprising Economic Value and Untapped Potential of the Mobile Phone

This document presents the findings of research that the GSM Association and McKinsey and Company undertook in order to assess the economic impact of the wireless sector and determine how government policies and operator initiatives influence the economic value created. The research focused on the differing state of the mobile industry in three developing countries in Asia - China, India and the Philippines.The document makes the following statements:

• The explosive growth of wireless subscribers is changing the society,
• Mobile phones increase the freedom, security and productivity of users,
• However, there is little hard data available to quantify the impact of the wireless industry on the economy and productivity.

The research finds that:

• There is a negative correlation between minimum cost of ownership and penetration,
• Penetration increases when coverage is improved.

The research arrives at the following broad conclusion:

• Estimates frequently understate the overall economic impact of wireless by at least 75%,
• The total impact of its benefits can approach 8% of a nation's gross domestic product (GDP).

To help realize the economic potential of wireless and ensure that even the poorest members of society can attain its benefits, the document recommends that governments and operators work together to:

• Lower the cost of ownership, making mobile phones affordable to all,
• Extend coverage to rural areas, where millions of potential users wait.