Effect of Mobile on New Digital Economy (GSMA 2017)

Written by : Wirawan Rizkika / 1401140469 / MB-38-INT-1

Mobile has never been separated from our life nowadays, every one has their own mobile phone, even a person can have more than a single device. Because of the increasing mobile usage, 4G uptake driving surge in mobile broadband adoption. The generational shift to mobile broadband networks across the world continues to gain momentum, driven by improved coverage of higher speed networks, more attractively priced data tariffs and greater availability and affordability smartphones. At the end of 2012, mobile broadband connections (3G and 4G technologies) accounted for a quarter of total connections (excluding M2M). This increased to 55% by the end of 2016, with 4 billion mobile broadband connections.

Increased mobile usage will affect the Revenue: short-term spike in growth, but challenges remain. Total mobile revenues reached $1.05 trillion in 2016, an increase of 2.2% on 2015. While down considerably on growth rates mobile operators witnessed over the last ten years, 2016 marked the second consecutive year of rising revenue growth. 2016 saw improved growth rates in developing markets in particular, as the macroeconomic headwinds eased and key markets such as China and India posted encouraging growth rates. The future outlook is more mixed – competition, regulatory intervention and slowing subscriber growth will continue to weigh on revenues, while rising demand for data and more sustainable pricing will act as a positive lever in ensuring mobile revenues continue to grow over the next four years.

Mobile contributing to jobs and economic growth. For the purposes of this analysis the mobile ecosystem consists of mobile network operators, infrastructure service providers, retailers and distributors of mobile products and services, mobile handset manufacturers and mobile content, application and service providers. The direct contribution to GDP of these firms is estimated by measuring their value added to the economy, including employee compensation, business operating surplus and taxes. In 2016, the total value added generated by the mobile ecosystem was around $1 trillion (or 1.4% of GDP), with network operators accounting for two thirds of this.

Platforms, scale and the shift to open. The shift of consumer engagement to mobile is now manifesting itself in the rapid growth of messaging platforms. The leading messaging platforms across the world continue to scale rapidly, with a total user base of around 3.6 billion at the end of 2016. The vast majority of the users on these messaging platforms are on mobile, suggesting that the majority of the just under 5 billion mobile subscribers across the world are using messaging apps.WhatsApp was the first messaging platform to reach 1 billion users, subsequently followed by Facebook Messenger. Newer messaging platforms are also emerging and growing rapidly, including the likes of Snapchat. Messaging platforms have now overtaken the larger social media sites in terms of their user bases, while also typically showing higher user retention and engagement than other apps.

The platform economy: messaging was just the start

Open innovation and the development of open standards has a long history in computing and software development, starting with the Linux operating system and spreading to a broad range of software products. Today, openness is de rigueur in all aspects of the internet, and the widespread adoption of large-scale collaboration has helped drive the rapid pace of innovation in the digital age.

Recent examples of open source initiatives include the following:

• Open Compute Project: its mission is to design and enable the delivery of the most e cient server, storage and data centre hardware designs for scalable computing. Members of the initiative include Facebook, Intel, Nokia, Google, Apple and Microsoft.

• OpenAI: a non-pro t arti cial intelligence research company, associated with business magnate Elon Musk, that aims to carefully promote and develop friendly AI in such a way as to bene t, rather than harm, humanity as a whole.

• The Telecom Infrastructure Project: founded
by Facebook, this initiative includes telecoms operators, infrastructure providers and other technology companies. This is an engineering- focused initiative that aims to reimagine ways
of building and deploying telecoms network infrastructure and drive the development of next- generation open components.


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So, mobile enables many opportunities that are hardly achieved without the help or the usage of mobile. It does really play a major role in New Digital Economy. It contributes to NDE, such as:


1.High contribution on jobs and economic growth. According to GSMA 2017, In 2016, mobile technologies and services generated 4.4% of GDP globally, equivalent to around $3.3 trillion of economic value.

2. Significant stimulation on people behavior to actively participate in the digital economy.

3. Development of many technologies, even more advanced to support

4. Creates effectiveness and efficiency


GSMA 2017



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