mobile information society - jussi hinkkanen

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Mobile Information Society

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Mobile devices, internet and broadband boosts GDP growth substantially in emerging economies

High-income economies

Low- and middle-income economies

0.5

1.0

1.5

Perc

enta

ge p

oint

s

0.43

0.72

0.60

0.810.77

1.121.21

1.38

Fixed Mobile Internet Broadband

“Productivity isn’t everything, but in the long run it is almost everything. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker.” Paul Krugman, The Age of Diminishing Expectations (1994)

10% Point Increase in Broadband Penetration Increases GDP by 1.38% Points per Year

10% Point Increase in Mobile Penetration Increases GDP by 0.81% Points per Year

Qiang, 2009, World Bank

Effects of Mobile Availability on GDP Growth

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‘Economic’ benefits of wireless communication in emerging markets are substantial and broad based

1,90 % 2,20 % 2,20 %

1,70 %1,90 % 1,60 %

1,10 %

1,70 %3,60 %

0,00 %

1,00 %

2,00 %

3,00 %

4,00 %

5,00 %

6,00 %

7,00 %

8,00 %

India China Philippines

End-user surplus

Indirect Impact from other Wireless sectors

Direct impact from operators

Multiplier of ICT investment on GDP output

Penetration of unique subscribers

~3.8~4.5~3.2-4.5

28 49 60

4,7%5,8%

7,4%

McKinsey; ITU, 2008; EIU, 2008, Yankee Group Forecast 2007; IDC, 2007

Contribution of the Mobile Sector Towards GDP

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Mobile devices are the primary solution for increasing ICT penetration in emerging economies

4

0

20

40

60

80

100

2002 2004 2006 2008 2010 2012

Subs

crib

er P

enet

ratio

n (%

)

Mobile PenetrationPC Penetration

Mobile Subscriber Penetration Rate, Mature / Developed Economies

0

20

40

60

80

100

2002 2004 2006 2008 2010 2012

Subs

crib

er P

enet

ratio

n (%

) PC PenetrationMobile Penetration

Mobile Subscriber Penetration Rate, Mature / Developed Economies


Operators are investing heavily to deploy 3G networks

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3G Capex for selected countries in Africa2010, 2011, Millions USD

3G Capex Growth 2010 – 2011 %

Nigeria

+28%

Algeria

+31%

South Africa

+32%

Morocco

+80%

Egypt

+54%20102011

JapanEurope

13%9%

Africa Latin America

40%

Asia(excluding

Japan)

44%

22%

% of sales 3% 4% 5% 7% 5% 6% 3% 5% 4% 5%

• Highest 3G Capexgrowth

Source: WI, Gartner

© Nokia 2011


The path and steps to mobile enabled information society

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Thank you!Jussi HinkkanenVP, Government Relations and Business EnvironmentMiddle East and [email protected]

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mobile information society - jussi hinkkanen

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