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The economic impacts of mobile broadband
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Phil Manners
2 October 2013
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Productivity in Australia
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Strong growth from mid-90s to mid-2000s
Declining productivity growth since mid-2000s
Recent income growth driven by higher prices for our products
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2007 2008 2009 2010 2011 2012 2013
Ind
ex
1. Productivity of the sector
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Employment index Intermediate inputs Capital Input index
Input growth into sector has been slow
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350
2007 2008 2009 2010 2011 2012 2013
Ind
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1. Productivity of the sector
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Data useVoice minutesConnections Output index
Output growth of the sector has been rapid
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100
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350
2007 2008 2009 2010 2011 2012 2013
Ind
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1. Productivity of the sector
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Input index Output index
Outputs have grown faster than inputs = productivity
2. Business productivity from use of mobile broadband
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Survey of businesses by Woolcott Research Business
adoption and use of mobile broadband
Impacts on business
Performance of business over past 3 years
Ranking of mobile broadband within major business issues
Main Industry of Business
Total
(n=1002)
%
Agriculture, forestry and fishing 7
Manufacturing 6
Construction 16
Wholesale trade 5
Retail trade 10
Accommodation and food services 7
Transport, postal and warehousing 5
Information media and telecommunications 1
Financial and insurance services 4
Retail, hiring and real estate services 4
Professional, scientific and technical services 13
Administrative and support services 4
Education and training 1
Health care and social assistance 6
Arts and recreational services 1
Other services 6
Unknown 2
Company Size
Total
(n=1002)
%
1–4 employees (Micro) 534
5–19 employees (Small) 326
20–199 employees (Medium) 100
200+ employees (Large) 42
No.
Business use of mobile broadband
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Share of businesses using mobiles for…
Main uses are phone calls, emails and internet
Many businesses using mobile broadband for more sophisticated uses
2. Business productivity from use of mobile broadband
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Impact Share of businesses
noting impact (%)
Average impact across all
businesses (%)
Reduced costs 25 1.5
Saved time for employees 75 2.2
Increased revenue 21 1.1
Improved quality 62 na
Allowed access to new markets 33 na
Allowed access to new suppliers 30 na
Sectoral impacts from business survey
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Businesses that had higher revenue growth were more likely to cite impacts from mobile broadband
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Business ranking of mobile broadband as a significant issue
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Number mentioned Weighted by VA Weighted by number
Skill development of employees 716 81% 72%
More efficient tax system 357 24% 38%
Less government regulation 408 28% 41%
Investing in IT systems 346 39% 33%
Improving internal systems and processes 505 62% 50%
Investing in mobile broadband 209 26% 20%
Investing in machinery, other capital equipment 374 34% 38%
Broader economic impacts of mobile broadband sector
Productivity growth in and from mobile sector
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Annual impact (%, 2006 to 2013)
Sector productivity
Business productivity
Low high
Investment 0.02 0.26 0.61
Wages 0.30 0.34 0.57
GDP 0.17 0.33 0.66
Exports 0.11 0.57 1.05
Consumption 0.21 0.27 0.52
─ Increased returns from investment and capital deepening
─ Higher wages
─ Expansion of economic activity and exports
─ Higher levels of household consumption
Implications for spectrum management
If no additional spectrum provided then what?─ And when?
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