The telecom industry could play an important role in liberating the global economy from slowdown and to bring the GDP growth back on track.
As the leaders of G20 countries are meeting to discuss measures to overcome economic slowdown, the mobile industry has come up with a solution. Easing of regulatory conditions will help the mobile industry to generate sufficient revenue to get through the slowdown without the assistance of any stimulus package from the government, as reported by MOBILE BROADBANDGENIE.
25 telecom firms, including AT&T, Nokia, Ericsson and Orange, under the leadership of GSMA have sent a letter to the G20 summit. In the letter, they state that the telecom industry could raise the worldwide GDP by 3-4% by 2014, provided they are allocated with right broadband spectrum and flexible industry regulations.
Telecom companies are expected to invest nearly $800 Billion in the next five years and majority of this investment will be utilized to expand the mobile broadband. Moreover, telecom companies are optimistic of getting favorable business environment for investing such a huge amount of money. They are looking for the government cooperation in the release of broadcast spectrum and in the allowance of minimal intrusive regulations.
The telecom industry says that it can stimulate growth by expanding the mobile broadband to connect hundreds of millions of people with the Internet if appropriate investment is made. The growth will stem from less developed nations with very poor access to fixed line networks.
Michael O'Hara, Chief Marketing Officer, GSM Association Industry Group, told, "We believe we have the potential to connect 2.4 billion people to the Internet by 2013 via mobile", as reported by REUTERS on April 2, 2009. He estimated that between 200 and 300 Million people are currently accessing Internet via mobile networks.
According to the letter, regulatory policies play very critical role in the development of mobile broadband. The industry has witnessed increased regulatory intervention in recent months, profoundly in those areas where it is not appropriate.
The GSMA further says that the government bodies' regulations like the European Union's ruling on prices under which the telecom companies can charge each other and consumers or how they should share resources hamper the investment.
According to a Research Analyst at RNCOS, "The mobile broadband industry could become a catalyst for the efforts being made by governments worldwide to stimulate economic growth in the current economic slowdown. This is not the first time when the industry's potential has been pointed out. The industry has put this issue before the world leaders to create better conditions for investment and to liberate the broadcast spectrum."
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