Deutsche Bank Studies GSMDeutsche Bank Studies GSM

GSM revenues reached $277B in 2003; Deutsche Bank forecasts $500B in 2005 and examines socio-economic impact of GSM in white paper

February 23, 2004

2 Min Read

CANNES, France -- Global revenues attributable to GSM totalled $277 billion in 2003 according to a newly published white paper from Deutsche Bank. This socio-economic study of the impact of GSM worldwide further forecasts that GSM revenues will grow to $500 billion in 2005.

The Deutsche Bank paper, “Brilliant Past, Bright Future,” published today, describes the evolution of mobile over the last decade from a niche business to one of the largest and most important industries in the world.

Beyond the basic financial boost provided by GSM to economies worldwide, Gareth Jenkins, senior telecoms analyst at Deutsche Bank and lead author of the report, highlights the impact GSM has had on real people’s lives. Perhaps the most far-reaching social consequences of GSM telephony have been felt in emerging economies.

“The deployment of GSM has helped to bridge the digital divide and bring modern telecommunications services to chronically under-served communities in Africa, Asia and Latin America,” said Jenkins. The report examines the impact that GSM can have in developing economies through case studies on Nigeria and Afghanistan.

“It took telephone companies more than a century to install one billion phone lines,” said Rob Conway, CEO of the GSM Association and member of its Board. “GSM has connected its first billion users in just 12 years, changing, improving and saving the lives of millions of people along the way.”

The billion GSM milestone is the central theme at this week’s 3GSM World Congress in Cannes where it is being celebrated by leading industry players including the GSM Association, Alcatel, Ericsson, Motorola, Nokia, Nortel Networks, Siemens, 3G Americas and the UMTS Forum.

“The key to the success of GSM is that its development was founded, from the outset, on delivering a specific user benefit – international roaming,” stated Gareth Jenkins. “International roaming demands an open, future-proof standard to ensure interoperability while not stifling competition or innovation among suppliers.”

There are now more GSM mobile handsets in daily use than the total number of personal computers and televisions combined. Driven by GSM, the number of mobile subscribers exceeded the number of fixed telephone lines for the first time in 2003. In the last twelve months alone, GSM added nearly 198 million new users - more than the second placed mobile technology (CDMA) had in its global customer base at the year-end.

“As we rapidly evolve towards a mobile wireless information society that will bring about convergence of mobility and the internet, GSM is continuing to play a crucial role in facilitating the smooth transition to the next generation of mobile telecommunications services,” concludes Jenkins.

It is estimated that at least 85% of the world’s next-generation wireless customers will utilise the GSM family of technologies – GSM/GPRS, EDGE and 3GSM – for both voice and data services.

Deutsche Bank AG

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