One of the Federal Government’s most senior Ministers this week highlighted the vital role mobile telecommunications is playing in driving productivity across the economy and the need to further boost productivity to accelerate recovery from the economic “cyclone” Australia faces.

The Minister for Finance and Deregulation, Lindsay Tanner, told the National Press Club on Wednesday that mobile telecommunications has had an extraordinary impact on productivity.

“You know, if you want to know what’s increased productivity across the world, this thing (holding up his mobile phone to the audience). We will look back – those of us who are still here – in 50 years’ time, and call this period of human existence the era of the mobile phone,” he said.

“(It’s) had extraordinary impact on productivity. Extraordinary impact. The internet, obviously, equally. But, the internet and the mobile phone, they’re becoming the same thing.”

Mr Tanner said Australia could not afford inefficient and unproductive arrangements in the hard economic times that Australia faced because they placed barriers in the path to economic recovery.

He said improving productivity was the key to long-term sustainable growth and it would play a vital role in the recovery in Australia from the economic “cyclone” that it faces.

AMTA Chief Executive Officer, Chris Althaus, said Mr Tanner’s comments were a timely reminder of the important role the industry plays in the Australian economy as a result of the enabling technology driving productivity across all sectors.

The latest generation mobile services are not only contributing directly to economic growth, but are also providing significant indirect economic benefit through the productivity gains provided by mobile technology. This is illustrated in a recent Access Economics analysis[1] which estimates, for example, that mobile data alone will contribute an extra $2billion to GDP by 2010.

“However, given future demand projections, there is a critical need to address future 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,” Mr Althaus said.

In 2009, the Australian Government will make several key decisions regarding Australia’s future approach to spectrum management.

Mr Althaus said: “Mobile broadband is a star performer and has huge potential to further extend the key role of mobile telecommunications in all facets of life through the union of two of the most influential technological developments of the digital age – the mobile phone and the internet.

“Analysts predict that mobile devices will be the primary tool to connect to the Internet by the year 2020.

“The productivity enabling role of mobile services is significant and growing. However, as noted, given future demand projections there is a critical need to address future growth trends from an infrastructure perspective.

“When older style (analogue) TV services are switched off in 2013 some radiofrequency spectrum will become available for other uses because new digital TV needs less spectrum to operate. This freed up spectrum, in the 700MHz band, is commonly referred to as the ‘digital dividend’.

“AMTA considers digital dividend spectrum should not be retained as a broadcasting-only band post-analogue switch- off (ASO). Retaining digital dividend (700MHz) spectrum for broadcasting only would deny the economic (productivity) and social benefits that services, such as advanced wireless broadband technology, can deliver across the Australian economy and community, including in rural and regional areas.

“Without doubt, the digital dividend presents a nationally significant opportunity to re-allocate valuable spectrum to support service delivery opportunities using advanced mobile telecommunication technologies, such as mobile broadband.”