The rapid spread of smartphones threatens to cost billions in productivity, increase data prices and slow download speeds unless the mobile telecommunications industry gets more wireless spectrum, the Australian Financial Review wrote on Wednesday.

The article said Communications Minister Stephen Conroy would launch two reports at Parliament House on Wednesday that were commissioned by the Australian Mobile Telecommunications Association (AMTA).

The first, produced by Access Economics, estimates that the mobile telecommunications industry added $17.4 billion to the economy last financial year. This figure included the flow-on value of services provided to other sectors, which had grown by $3 billion, or almost 40%, in two years as a result of productivity gains.

But the report warns that the full potential of mobile telecommunications would not be realized unless industry can access adequate spectrum. Mobile operators are coming under increased strain as the number of people using smartphones and notebook computers to access mobile broadband continues to grow.

Subscribers to 3G data services grew by 44% in 2008-09 to reach almost 12.3 million, according to the Australian Communications and Media Authority (ACMA).

Mobile operators are hoping to get access to additional 700MHz and 2.5GHz spectrum currently used for analogue television broadcast and electronic newsgathering respectively. This would increase network capacity and service speeds, but the government has yet to announce when this spectrum will be auctioned.

The second report launched by Senator Conroy, compiled by Network Strategies, estimated that allocating the 700MHz and 2.5GHz spectrum bands to the mobile telecommunications industry would increase gross productivity by $62 billion between 2013 and 2020.

A spokeswoman for Senator Conroy said the Government recognised the pressure placed on spectrum management but significant progress was being made in reaching decisions that would shape the communications sector.

AMTA Chief Executive Chris Althaus described demand for mobile broadband as “runaway train” and called on the Government to reallocate spectrum sooner rather than later.

“There is no question with current growth we are seeing in mobile broadband and mobile date volumes, that without new spectrum resources there will be capacity constraints on the networks. With all that has to happen – investment, infrastructure deployment, device design and importation, the design of the networks – we are really up against it now for 2014. There’s no time to be lost here.”