TAIPEI, Taiwan, July 13, 2011 /PRNewswire/ --
The growth of HSPA and LTE technology adoption worldwide will see Mobile Broadband account for 1.8 per cent of Taiwan's GDP by 2015
The GSMA today announced that Mobile Broadband technologies will contribute TWD333 billion (US$11.6 billion) to Taiwan's economy by 2015, an equivalent of 1.8 per cent of GDP. This impact is derived from direct spend on mobile services (TWD161bn), the growth of the Mobile Broadband ecosystem (TWD103bn) and the productivity impact on industry (TWD69bn). The figures come from a new study, commissioned by the GSMA and conducted by analyst firm Analysys Mason, on the impact of Mobile Broadband growth in Taiwan and across the globe.
Highlights from the report show that wireless technologies such as HSPA, which is forecast to exceed 2.1 billion connections globally by 2015(i), will generate TWD30.3 billion (US$1.05 billion) alone for Taiwan's ICT manufacturers through the rise in export of Mobile Broadband equipment and devices. Furthermore, the rise in domestic adoption, with HSPA connections expected to increase from 9 million today to 19.8 million in 2015 and LTE adoption to exceed 2.5 million by 2015(ii), will lead to a 25 per cent annual increase in spending on Taiwanese-manufactured Mobile Broadband technology.
Taiwan's ICT industry will also benefit from the huge increase in LTE adoption across the globe. With more than 300 million connections worldwide(iii) expected by 2015, revenues generated by LTE are expected to quickly surpass those of Taiwan's WiMAX technology sector. According to Analysys Mason, HSPA and LTE will generate TWD27.3 billion (US$934 million) for Taiwan's economy by 2015, compared to TWD3 billion (US$100 million) for WiMAX.
Jaikishan Rajaraman, Senior Director, Asia Pacific, GSMA commented: "HSPA and LTE are now firmly established as the dominant Mobile Broadband technologies worldwide, and Taiwan must seize this opportunity to leverage its extensive telecoms expertise to focus on the development and export of HSPA and LTE equipment and devices globally."
Rajaraman continued: "It is essential that the Taiwanese government acts quickly to support manufacturers and allocate spectrum for LTE. This includes releasing digital dividend spectrum in the 700MHz band in line with the rest of Asia, enabling Taiwan to benefit from economies of scale and lower cost equipment and devices, as well as changing the license conditions for 2.6GHz spectrum, which is restricted to WiMAX services, to allow the rapid deployment of LTE."
The growth of Mobile Broadband in Taiwan will largely be driven by a rise in smartphone penetration. 3G handsets are experiencing exponential growth as operators have rolled out extensive networks and the device ecosystem has developed. In Q1 2011, 44% of total handset sales were smartphones, an annual increase of 150%, and it is likely that increases in wireless broadband penetration will be driven by consumers starting to use smartphone features. Additionally, shipments of app-enabled smartphones and tablets worldwide are expected to reach 377 million in 2011 and 462 million in 2012, overtaking traditional PCs.
However, it is not only manufacturers that will benefit from the uptake of HSPA and LTE. By 2015 Mobile Broadband will generate an increase of TWD42.8 billion (US$1.5 billion) in the consumer and retail sectors through more vibrant online commerce, entertainment and advertising, TWD17.4 billion (US$605 million) in social and government services with mHealth being a key driver, and TWD12.6 billion (US$438 million) across the broader corporate segment.
Rajaraman concluded: "The growth of HSPA and LTE Mobile Broadband offers huge benefits to Taiwan. It will transform how people access information and services, drive new efficiencies across a number of industry sectors, and generate significant returns for its ICT industry."
To view the report, please follow this link: The Impact of Mobile Broadband on Taiwan
About the GSMA
The GSMA represents the interests of mobile operators worldwide. Spanning 219 countries, the GSMA unites nearly 800 of the world's mobile operators, as well as more than 200 companies in the broader mobile ecosystem, including handset makers, software companies, equipment providers, Internet companies, and media and entertainment organisations. The GSMA also produces industry-leading events such as the Mobile World Congress and Mobile Asia Congress.
For more information, please visit Mobile World Live, the online portal for the mobile communications industry, at http://www.mobileworldlive.com or the GSMA corporate website at http://www.gsmworld.com.
(i) Source: Wireless Intelligence. Q4 2015
(ii) Source: Wireless Intelligence. Q2 2011 & Q4 2015
(iii) Source: Wireless Intelligence. Q4 2015