GSM Association: The mobile communications industry is at the heart of Brazil ’s transformation

The GSM Association (GSMA) released its first comprehensive evaluation report on the Brazilian mobile industry today, expressing new insights into the impact of mobile technology on the lives of Brazilians at an alarming rate. "GSMA Brazil Mobile Observatory" (GSM Association Brazil Mobile Monitoring) details the explosive growth of the mobile industry and a series of services that the industry brings to the Brazilian people.

Brazil is the fourth largest mobile market in the world, with more than 260 million active mobile connections, including 60 million mobile broadband connections. Brazil plans to maintain a strong growth rate, bringing the number of mobile broadband connections to 135 million by 2014. The increasing adoption of mobile technologies and services (including Near Field Communication (NFC), mobile healthcare, mobile education and mobile e-commerce) will further shape the future of the Brazilian mobile industry.

Franco Bernabe, chairman of the GSM Association and chairman and CEO of the Telecom Italia Group, said: "Mobile technology is promoting the development of low-cost innovative data services through extensive broadband access and important infrastructure investments. Brazil is at the forefront of transformation. It is now the real time for the mobile industry to provide greater socio-economic benefits to Brazil and the rest of the world. "

The exponential growth of mobile data and the new business opportunities it brings

In Brazil, with the increasing availability of smartphones and tablets, user data traffic is expected to grow at an average annual growth rate of 83% between 2008 and 2020, and the number of smartphones is expected to reach more than 75 million by 2016 . Between 2011 and 2016, the country's demand for mobile broadband is expected to increase 19-fold.

Mobile broadband services will further increase productivity by transforming consumer and business operations and communication, enabling local small and medium-sized enterprises to participate in the mobile value chain by producing localized content, software and applications. The mobile industry is at the core of the economic innovation system, and new services such as mobile e-commerce, mobile money, mobile healthcare, mobile education and smart cities will be supported by technologies such as NFC and Internet of Things (M2M) connectivity.

The 2014 World Cup and 2016 Olympic Games to be held in Rio de Janeiro will further increase the demand for mobile services. The World Cup is expected to generate more than 1 million roaming connections, and the data traffic generated within 8 weeks will be three times higher than usual. Analysts expect that during the 2012 London Olympics, an average of 60GB of data traffic will be generated per second in the Olympic Park. This data is expected to increase significantly after four years. Providing such additional capacity within such a limited time window will be a major challenge for operators' fabrics.

Distribute digital dividends for mobile services

If you do not continue to allocate surplus spectrum to mobile services, mobile networks may face significant pressure. In Brazil, the 700MHz frequency band, commonly known as the digital dividend, has the excellent characteristics required to expand mobile coverage and can be effectively combined with the 2.5GHz frequency band to seamlessly provide 4G services, but this frequency band is now allocated to broadcast services. According to a recently released GSM Association / TAS research report, allocating the 700MHz frequency band to mobile services will directly and indirectly contribute US $ 5.3 billion to Brazil ’s GDP, create more than 4,300 jobs and increase taxes by US $ 1.3 billion.

Simplified regulations and tax cuts

So far, the Brazilian mobile industry has achieved great success, but there are still many major factors that restrict the development of the industry. The complex and time-consuming on-site and antenna installation approval process for national and local government agencies is seen as the biggest obstacle to further investment in the mobile industry. The regulations of various government agencies on electromagnetic wave power limitation and telecommunications tower expansion authorization are not only complicated, but also not unified with each other. There are more than 250 different antenna policies. In addition, in Brazil, the taxes imposed on mobile consumers and operators are also among the highest in the world.

Bernabe continued: "Transparent, stable and informative rules and regulations, enhanced coordination between central and local government departments, and tax cuts will optimize investment opportunities in the mobile industry. This will also become a success in the deployment of long-term evolution (LTE) services And the key to the timely launch of the 2014 World Cup. "

The economic and social impact of the mobile industry in 2011

Mobile operators and the broader mobile industry chain have made important contributions to Brazil ’s economic and employment growth:

Revenue of mobile operators: In 2011, it was US $ 14.8 billion, which is approximately 2% of Brazil's GDP. Investment by mobile operators: The total investment since 2008 has been close to US $ 23 billion. The direct contribution of the entire mobile industry chain [3]: 53.8 billion US dollars, an increase of 20% over 2008. Overall contribution to increasing productivity, lowering prices and expanding consumer groups: $ 110.6 billion, or approximately 4.6% of GDP. Contribution to the Brazilian job market: The mobile communications industry created 250,000 full-time jobs last year.

In Brazil, the mobile industry has produced a wide range of social benefits from the enhancement of personal communications and social cohesion to the provision of important services to low-income people in rural areas. Since the launch of 3G services four years ago, the mobile industry has achieved rapid growth and a wide range of investments. Thanks to this, the goal set by the Brazilian government to increase the number of broadband connections to 60 million by 2014 has been achieved. Therefore, the GSM Association currently hopes that the government of the country will consider giving the mobile industry more roles in its social change strategy.

Anne Bouverot, President of the GSM Association, said: "The mobile industry will lead to a change in the communication and lifestyle of Brazilians. Brazil will face many challenges in the next few years, including the success of hosting the World Cup and the Olympic Games. Operators and governments can cooperate in mobile Building on the industry ’s success, it will expand the unique benefits that the industry brings to Brazil and enhance the country ’s image on the world stage. "

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