Retail in Asia

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Mobile users to hit 5.7bn by 2020 driven by Asian market

The number of mobile phone users globally will surpass five billion by the middle of this year, according to a recent study, with Asia expected to push user growth to almost three quarters of the world’s population by 2020.

GSMA, the association of mobile operators, said populations in Asia are on the rise, especially in India, driving the number of mobile users to hit 5.7 billion over the next three years, up from 4.8 billion a year ago.

By geographic segment, Asia will account for around half total growth, according to the ‘Mobile Economy’ report, with India alone adding some 310 million new subscribers by 2020.

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The study also showed a trend towards mobile broadband networks and smartphones, which highlighted the mobile industry’s growing contribution to economic activity and social development in poorer markets.

”Mobile is a global platform that today supports two-thirds of the world’s population, delivering the connectivity and infrastructure that is powering new digital economies and addressing socio-economic challenges,” said Mats Granryd, GSMA’s director general.

”Our latest Mobile Economy report reveals how the near ubiquity of smartphones and high-speed connectivity is enabling innovation in areas such as artificial intelligence and driving the digital transformation.”

More than a trillion dollars has been invested in global networks since 2010. The telecoms sector accounted for 4.4% of world GDP worth US$3.3 trillion dollars last year. This will rise to 4.9% by 2020, or an economic value equivalent to US$4.2 trillion, said GSMA.

According to report authors, mobile operators will invest a further US$700bn into mobile by 2020, as 5G connectivity gets ready to provide even faster data connections. The current 4G connectivity will remain the norm, however, and is forecast to leap from 21% to 41% market share by 2020. GSMA said 2016 saw 580 4G networks launched in 188 countries covering 60% of the planet.