The rapid adoption of mobile data and continuing rise in mobile penetration are driving productivity gains and boosting economic growth, highlighting the key industry need for timely access to spectrum resources to accommodate the demand.

AMTA Chief Executive Officer, Chris Althaus, told the RadComms2010 in Melbourne yesterday that the rapid adoption of mobile data has increased the productivity impact of the mobile telecommunications industry on the Australian economy.

The Australian Communications and Media Authority’s conference heard about the latest spectrum developments.

Mr Althaus said broadband was the centerpiece of the digital economy and the Government had identified access to broadband as critical if Australian businesses and individuals were to reap the full benefits of participation in the global digital economy.

A study undertaken by the World Bank last year had analysed the impact of ICT technologies on the average GDP growth in 120 countries from 1980 to 2006. The study found that a 10% increase in broadband penetration in developed countries yielded a 1.2% increase in economic growth.

The impact of mobile and internet penetration were also significant, yielding 0.6% and almost 0.8% in economic growth.

Mr Althaus said mobile broadband subscriptions had increased by 162% in 2008-09 to 2.1 million and  made up 25% of all internet subscriptions in June 2009, which was 11% rise from the previous year.

The Australian Bureau of Statistics recorded 40% growth in mobile broadband subscriptions to 2.8 million between 1 July 2009 to 31 December 2009.

According to Telsyte, strong growth prospects continue for the mobile market despite mobile penetration already having reached 115% last year. Telsyte expects mobile penetration to reach 130% by 2014.

Telsyte’s research director Warren Chaistien said mobile broadband, smart phones and application innovations would drive near-term growth while multiple devices, concierge serves and machine-to-machine would be the key in the longer term.

Mr Althaus said Concept Economics’ productivity forecasts had estimated that annual household consumption would be 1.4% greater with mobile broadband than without it and real GDP increased by 0.9% as a result of impacts derived from mobile broadband.

“The mobile industry is a significant - and growing - contributor to Australia’s productivity and its economy. It is a key plank in enabling Australians to participate in the digital economy,” he said.

“As the Government has identified, access to broadband is critical if Australian businesses and individuals are to reap the full benefits of participation in the global digital economy. The geographic and demographic conditions in Australia dictate that wireless broadband service is even more important here than in many otherwise comparable nations.

“Given future demand projections, there is a critical need to address future mobile growth trends from an infrastructure perspective. Radiofrequency spectrum is fundamental infrastructure for the provision of mobile telecommunication services. Without it, mobile service is not possible. Further, the type and amount of radiofrequency spectrum made available for mobile telecommunications will influence performance and service levels.

“If Australia is to enjoy full participation in the digital economy, government must ensure that sufficient and appropriate radiofrequency spectrum is made available to the mobile telecommunications industry to allow it to meet future mobile growth demand. This includes spectrum from the digital dividend as well as spectrum in the 2.6Ghz band.

“The government must also work to minimise unnecessary regulatory burden on the industry. The regulatory framework must be very high-level, allowing different sectors of the industry the flexibility to meet the legislation in the most appropriate manner for them (including through Industry Codes and Guidelines, or in the case of e-waste initiatives, programs like MobileMuster).

“Further, it must be clear that any new legislation or regulation is only introduced if existing legislation has been clearly shown to be inadequate – and the new legislation has been shown to be better than any alternative.

“Failure to do this will result in increased costs, less innovation and fewer benefits for consumers.”