Economic and Social Effects of Mobile Phones

Prof. Hamid Dar

Name: Sana Javaid
Roll number: 1116-MSBF-13
Subject: Economic Analysis
Semester: 1
MS Banking & Financial Economics
Session: 2013-2015


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Economic and social effects of
mobile phones
Contents
Introduction: .................................................................................................................... 4
Popularity ........................................................................................................................ 4
Functions of Cellphones: ................................................................................................. 5
1. Phone calls and text messages .......................................................................... 5
2. Add in services of mobile phones ....................................................................... 5
3. 24/7 Internet Access .......................................................................................... 5
History: ........................................................................................................................ 5
Social effects of using a mobile phone: ........................................................................... 6
Positive aspects ........................................................................................................... 6
1. Mobile Phones Increasing Portability and Convenience... .............................. 6
2. Text-Messaging .............................................................................................. 7
3. Use of mobile phones In Emergencies... ........................................................ 7
Negative effects of Cell Phones ...................................................................................... 8
a) Negative Impact On Health... ............................................................................. 8
a. 390% increased risk for brain tumors ......................................................... 8
b. Brain scanning confirms that cellphones affect the brain deeply .................... 8
c. "Association of mobile phone radiation with fatigue, headache, dizziness,
tension and sleep disturbance", ............................................................................... 9
b) Safety issues: ..................................................................................................... 9
c) Environmental effects ............................................................................................... 9
i. Mobile Phones and Vanishing Bees. ................................................................... 10
ii. Effects on birds and animals ............................................................................... 10
iii. The improper disposal of cellphones ................................................................ 10
iv. Behavioral aspects ................................................................................................. 11
a. Unnecessary expenses .................................................................................... 11
b. Inappropriate Content And Contacts ................................................................ 11
c. Revealing too much personal information ........................................................... 12
d. Cyberbullying ................................................................................................... 12
e. Location-based services .................................................................................. 13
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f. Late-night texting ................................................................................................. 13
g. Mobile phone theft/crime .................................................................................. 14
h. The mobile wallet ............................................................................................. 14
 Economic aspects of using mobile phone in the world ........................................... 14
 Increase in mobile subscription: ............................................................................. 14
According to ITU report 2013 ―6.8 billion mobile-cellular subscriptions‖ .................... 14
Mobile-Cellular Subscription Growth Rates, 2005-2013 ............................................ 15
 Economic aspects of mobile phones in Pakistan ................................................... 15
 Impact of Deregulation of telecom sector on Economy of Pakistan ....................... 15
 Foreign Direct Investment (FDI) .......................................................................... 16
 Employment in Telecom Sector ............................................................................. 17
 Taxes on Telecom Sector .................................................................................... 17
 Increase in Telecom Imports ............................................................................... 18
 Economic Effects On Indian Economy On Cell Phones ......................................... 18
Conclusion .................................................................................................................... 19













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Introduction:
The mobile telecommunications industry has grown rapidly over the last three
decades representing one of the most intriguing stories of technology diffusion.
Since 2002 mobile subscribers have exceeded the number of fixed lines globally.
The process to achieve what fixed phones have struggled for more than 120 years
took less than a fifth of the time for mobile networks. Unlike preceding network
technologies, mobile phone networks can be built quickly provided the spectrum
agreements are in place. Thanks to competition they also offer much improved
services both in terms of capabilities and in terms of informational retrievals
A cellphone is a portable wireless telephone that allows for telecommunication
usually in a specified area normally defined by the user's geographical position. It is
also known as a mobile phone or cellular phone.
Popularity
As technology is increasing at an incredibly rapid pace, cell phones are
becoming increasingly popular with each passing day. The fast technological
development can be judged from the fact that about twenty years ago, cell phones
were seen as huge, heavy and expensive devices made only for the elite class, the
police force and the army. But now 50% of all children own cell phones. Even in the
developing countries the demand for cell phones is increasing day by day and
people are using them for personal and business purposes.
With slider phones offering a larger main display than their flip phone
counterpart, smartphones that slide horizontally to reveal QWERTY keyboards and
the Apple iPhone's full touchscreen display, the general public is taking further
interest in these phones upon recognizing their uniqueness and versatility of different
features and even virtual buttons via the touchscreen instead of the mundane
physical ones.
Furthermore, mobile entertainment has also become an essential motivation
to obtain cell phones. Music phones like the Sony580i serve as MP3 players,
whereas camera phones are nowadays taking pictures which are as clear as
separate digital cameras. Thirdly mobile web surfing is gaining popularity too. The
Safari web browser is particularly powerful on iPhones.
In short, cellphone packages are becoming cheaper and progressively more
appealing in almost everywhere in the world, making them a highly sought after
device which accompany us through our daily lives and as such, come with an
invisible force of cause and effect, merits and demerits.
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Functions of Cellphones:
1. Phone calls and text messages
Without a doubt, cellphones are the most commonly used
communication device for conversing long range through phone calls and text
messaging. It is estimated that well over half of all present day cell phone
users are using the short messaging service (SMS) for communication.
2. Add in services of mobile phones
But using cell phones for the sole purpose of communicating with
others is a thing of the past because they now encompass several other
applications as well. Aside from its traditional functions, most cellphones
these days possess music playing capabilities, built-in cameras, alarm clocks,
calculators, reminders and radios. They are also a good entertainment device
comprising of many games, with even more downloadable or installable if you
are willing to pay for them.
3. 24/7 Internet Access
In addition, you can access the Internet through GPRS, in order to stay
connected regardless of where you are. No longer do you have to rely on
laptops, with devices like these that enable you to go online, check your
email, read the latest news, organize your timetables and even exchange
information and pictures with your friends via Bluetooth or infrared.
History:
Dr. Martin Cooper, known as the father of the cell phone, set up a base
station in New York with the first working prototype of a cellular telephone in 1973.
Mr. Cooper and Motorola took the phone technology of the Motorola Dyna-Tac to
New York to show the public.
1977-79: Public cellphone testing began, first in Chicago and then in other
cities of USA. Japan joined the testing service afterwards.
1983: Motorola introduced the Dyna-Tac phone into commercial service with
each phone costing the consumer $3,500. It took seven additional years
before there were a million subscribers in the United States.
1989: Motorola MicroTAC 9800x was the first pocket-sized cellphone which
employed a slim, flip-phone design, still being emulated today.
1991: Advent of the second generation of cellphones with GSM networks
and a divergence from the larger phones models.
1993: Text-messaging became the trend and most helpful tool of
communication, in particular among youths.
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1996: Motorola's Startac introduced vibrations to notify users of incoming
messages and calls. Toshiba also releases the world's first internal antenna
cellphone, giving rise to more popularity attributed to their improved design.
1999: The Nokia 7110 is the pioneering smartphone of that time, which
allowed for WAP, Internet access and infrared. However, as you probably
have already realized, these functions have now become the norm.
2000: Now in their third generation, the first in-built camera phone is produced
by a j-phone, originating from Japan. In the same year, Nokia 3210 introduces
T9 predictive text (dictionary) ability to facilitate texting.
2002: While arguably not the first, Sony Ericsson announces the first
commercialized colored screen cellphone.
2002-05: Danger Hiptop, Treo and Blackberry are just a few of the many
smartphones which revolutionized how PDAs worked with extraordinary
technology, features and organizers.
2008 to now : iPhone 3G became an instant hit as the first phone which can
be fully controlled via a touch screen and comes with additional functions,
which differ from the traditional camera and music player, such as third party
applications, maps and Safari browser and now various other companies
have introduced smart phones
Social effects of using a mobile phone:
Mobile phone technology facilitates both separation of people (in that people c
an be dispersed and still be available) and facilitates linking people together (in that
it is easier to communicate with the people previously unavailable).
Members of society are experiencing great challenges in managing simultane
ous contexts—the face-to-face and the digitally mediated which may have very
different types of participants and require quite different forms of talk and different
degrees of responsibility and responsiveness
Positive aspects
What makes a cellphone so useful and tempting? It is definitely not just a
fashion statement or valuable purely for its technology features. There is more to
why cellphones have become an essential part of our lives, mainly due to their
portability and flexibility in text messaging. More than that, you probably never knew
that cellphones can even be rather nifty in emergency situations!
1. Mobile Phones Increasing Portability and Convenience...
Firstly, cellphones can be used almost everywhere without cables or
electricity. By using a mobile phone, you can communicate with anyone whenever
you want and wherever you are.
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Furthermore, cellphones have revolutionized long distance communication.
Long distance calls can be made at extremely low charges. In this way you will have
little difficulty in keeping in touch with your friends, family and especially those who
are geographically distant.
For students, like you, especially, in doing projects or times of uncertainties,
you can easily phone your group mates or teachers to consult them and solve any
questions you may have. For example, when you are picking out something at shop
for a drama production and need to know which prop to get or when you find yourself
in doubt whilst studying at the library. Without cellphones, it would not be possible to
get a second opinion or help.
Internet connection in most phones also mean we can access the web
outdoors through sources other than our laptop, yet smaller and more convenient.
However, it is of course not as powerful.
2. Text-Messaging

These days, the world's most common means of communication is text
messaging (SMS). Through SMS, one can communicate easily at a time when
he/she does not want to be heard. It is often less time-consuming and undoubtedly
less expensive to send a text message than to make a phone call.
In addition, messages can be sent to a large number of people
simultaneously. The latter service may be used by your classmates or school to send
notices and reminders for important school happenings or even by online services to
distribute news and valuable information to subscribers. Example include the latest
football results, career advice, mobile banking and traffic conditions. Even the
simplest of cellphones have this system installed, allowing communication to
become cost-effective.
3. Use of mobile phones In Emergencies...

Possibly the utmost benefit of cellphones is the sense of security they provide
you with the knowledge that you are able to contact help anytime and anywhere.
There have been several instances where cellphones have proven themselves as
life-savers whereby victims of unfortunate disasters (such as car malfunctions,
breakdowns, landslides or earthquakes) have relied on them to get themselves to
safety.
What is more ingenious of cellphones is their incorporation with the global tracking
system using which allows the police to trace their owners/robbers in case of crimes
such as kidnaps or theft.
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Negative effects of Cell Phones
In contrast, while cell phones make our lives more convenient, they also come
with certain disadvantages, in particular, the adverse effects on our health, actions,
and even to our mother nature.
a) Negative Impact On Health...
The frequent use of cell phones is an unimaginable threat to human health.
a. 390% increased risk for brain tumors
Professor Lennart Hardell, Sweden has made a large study with
1251 cases of brain tumors compared to controls. The risk is increased
by the more years and the more hours per year the mobile phone had
been used. The increased risk was 390% for mobile phones and 190%
for cordless phones. The greatest risk was for Astrocytoma, a
malignant tumor. The incidence of Astrocytoma in the US is one per
2000 persons. If the risk increases 390 %, as indicated by Hardell , this
means an increase to almost 2 per 1000 (2 promille), and this is likely
to be an underestimate, as the risk will increase further every year the
phones are used. 5 billion are using cellphones today (see "Number of
Cellphones.."), and even if only 2 promille would get deadly brain
tumors, this means that about 10 million people are under risk to be
killed by a brain tumor.
b. Brain scanning confirms that cellphones affect the
brain deeply
State-funded research in the USA has proven that cellphones
influences the activity of the brain to a significant extent. After 50
min exposure to a cellphone, the metabolism of the brain was
increased in the areas close to the phone Not only that, it also causes
disturbance in sleep, difficulty in concentration, fatigue, headache,
infertility, and hyperactivity in new born children. Chances of
Alzheimer‘s disease, leukemia, ear defects, and blurring of vision are
too noticed to be higher in cell phone users. In addition, cell phones
damage key brain cells as well as the DNA.
Professor Johansson finds that the brain tumor issue is a minor
thing compared to many other harmful effects. While brain tumors
affect a small percentage other serious effects affect the whole
population including genetic damage, sleep disturbances, reduced
learning capacity, concentration difficulties and psychological
problems.
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Children under the age of 10, in particular, are a lot more vulnerable to
microwave radiation from mobile phones because their immune system
is weak, their skulls are thin and their nervous system is still
developing. The dire health effects mentioned earlier are even more
severe on children because of increased absorption.
c. "Association of mobile phone radiation with fatigue,
headache, dizziness, tension and sleep disturbance",
Thamir Al-Khlaiwi, Sultan A. Meo, Department of Physiology,
College of Medicine, King Saud University, Riyadh, Kingdom of
Saudi Arabia (Oct 2003)
He said they found a relationship between headache, fatigue,
dizziness, tension and sleep disturbances in subjects exposed to
mobile phones emissions.... the use of mobile phones is a risk factor
for health hazards and they suggest that excessive use of mobile
phones should be avoided"
He also stated Increased sleep disturbances and depression
in mobile users. Number of mobile phone calls and SMS messages
per day were associated with sleep disturbances. SMS use was also
associated with symptoms of depression.
b) Safety issues:
Safety concerns include using a cell phone to talk or text messa
ge while driving or bicycling. This problem is a focus
of regulation in many countries. Mobile phone use while driving
undoubtedly increases the risk of accidents (collisions). Conversation
on cell phones, both hand held and handsfree, can influence driving
performance because the driver cannot concentrate fully on driving.
Using a cell phone severely impairs a driver's memory and reaction
times by disrupting signals to and within the brain. It is also considered
that people talking on cell phones are even more impaired than
intoxicated drivers.
c) Environmental effects
PSRAST finds that it cannot be excluded that, especially close to
Base stations, there may, in the long run, occur genetic changes in
plants, trees, microorganisms, insects and animals due to accumulated
damage to the DNA (in addition to the reported cancer increase in
humans). Below, we mention another possible complication:
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i. Mobile Phones and Vanishing Bees.
A study in England showed that bees refused to retrun to their
beehives where there was a mobile phone station. continuosly
emits the same radiation. It is discussed if the extensive use of
mobile phones may be one reason why bee colonies are vanishing
at a huge scale in Europé and the US.
Dr Mae-Wan Ho, biophysicist comments:
"But mobile phones have been around for close to 20 years, so why now?
There has been a recent change in cell phone technology that coincides with the
current crisis. At the beginning of the present century, 3G (third generation) mobile
phone systems became publicly available, leading to a surge in popularity of mobile
phones, and many more phone towers [11]. Bees are disappearing in North
America, Europe and also Australia, wherever mobile phones are greatly in use."
Bees are vital pollinators for agriculture. With the vanishing of bees, a
major food crisis could ensue.
ii. Effects on birds and animals
Every year, new towers reaching heights of 250 feet are built for
mobile phones all over the world, even on top of mountains, which
thousands of flying birds crash into. Common conjecture is that birds
have a special sensitivity to microwave radiation, hence when flying in
the night they rely on their senses instead of sight. As a consequence
of cellphones being widespread, millions of birds are led to death.
Additionally, farmers have noticed abnormalities in their animals which
disappeared once the animals were repositioned away from the towers.
iii. The improper disposal of cellphones
A more urgent issue is the improper disposal of cellphones. An
estimated 65,000 tonnes of electrical garbage is contributed by cell
phones every year, and the figure is growing. This is a growing concern
as cellphones contain toxic chemicals and metals which when leaked
and accumulated within our environment, will lead to vast pollution,
such as lead and land pollution. When consumed, lead can cause
dangerous implications to our internal organs, brain, nervous systems,
reproductive system and even result in seizures or osteoporosis,
especially in young children. What is more, lead can be fatal when
consumed.
Most frightening is the vicious cycle lead and land pollution may
result when leaked into the waters or sand and consumed by animals.
We may be lucky to see abnormaly in the animal produce and avoid
consuming their products. However, it may not always be visible and
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we may be consuming and accumulating vast amounts of toxins in our
body.
iv. Behavioral aspects
Due to reasonable prices, teenagers can easily afford cell
phones. They tend to overuse their cell phones every time at every
place. The teenagers chat, send and receive text messages, download
wallpapers and ring tones, play games and do lots more. In this way
they get distracted from the more important activities and duties of their
lives such as studies.
With the cost of mobile ownership decreasing significantly over
recent years, the age of ownership has similarly fallen. Research from
the Ofcom in the UK shows that, by the age of 11, 50 per cent of
children have a mobile phone, and 9 per cent by the age of 7.
Research from MobileYouth.org puts the average age of first phone
ownership at 7.1 years in Europe. Even those young children who don't
personally own a mobile phone are still likely to access and use the
phones of others.
a. Unnecessary expenses
Due to vast popularity, companies are constantly coming up with
new softwares, features and models to attract more buyers and higher
profits. Hence, the public would want to install new features and keep
their handsets up to date, spending more money and time this way.
They could also be tempted into getting hold of the latests phones even
if their old ones are functioning, incurring unnecessary expenses
without consideration.
Many mobile phone services provide access to premium-rate
services – be these downloadable ringtones, SMS voting (for example,
for a favorite participant on a reality TV show), or downloading the
latest game or ‗app'. Be wary also, that costs for using mobile phones
for voice or data when overseas can be higher, and will not necessarily
be contained within call plans.
b. Inappropriate Content And Contacts
Mobile phones now offer much of the functionality of a desktop
computer, meaning that full access to the internet is readily available.
Therefore the same risks exist – that children and young people may
access inappropriate content, or content and services that just aren't
designed for their age group. Likewise they might engage in
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communication – whether by text messaging, instant messaging (IM) or
via social networking sites (SNS) – that is not necessarily appropriate.
The issues are heightened by the fact that mobile phones are
such personal and private devices, and so it may be difficult for parents
to monitor online activity in the same way as they might on the home
PC.
c. Revealing too much personal information
The issue of revealing too much personal information is one of
the greatest concerns associated with online technologies today. Risks
include increased chances of online harassment or cyberbullying,
inappropriate online contacts, increased chances of being located in
the real world, and identity theft.
Online reputation is another factor: young people may upload
content and images, with little consideration for their longevity in the
online world. The online activities of youth may prove to be an
embarrassment in their adult lives, but are still ‗out there' for all to see!
Our online interactions also leave a ‗digital footprint': a trail
showing where we have been and what we have done, which can
impact upon privacy, both today and in the future.
Many social networks are now also ‗location‘ aware. This means
that when you update your social network profile from your mobile
phone it shows where you are or the area that you are in. Some
location-based services will even produce a custom map showing your
location and the location of all of your friends. While this type of
technology may be useful, it may also present other risks for some
children and young people.

d. Cyberbullying
Mobile phones have unfortunately been associated with
cyberbullying – that is, using the technology to deliberately hurt, upset,
harass or embarrass others. Text messages, for example, provide a
tool through which bullies can torment their victims, any time of the day
or night.
The camera capabilities of many mobile phones can further
aggravate the risk of bullying. Images or video can be taken, perhaps
even without the subject's knowledge or consent, and quickly circulated
or posted online. This can further add to the distress of the victim.
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Another example is the inappropriately named ‗happy slapping':
a term used to describe an assault captured using the video
capabilities of mobile phones and circulated or posted online.
Research on cyberbullying sponsored by Opennet has found
that The more extensively teenagers use their cell phones, the greater
their risk of exposure to both experiencing and engaging within
inappropriate mobile activity. Teens who are heavy cell phone users
are more likely than 'average' users to be cell phone mis-users,
become cyberbullies or experience harassment themselves. Heavy cell
phone users are defined as teens who send more than the 'average'
number of texts in a typical school day (60 or more).
The Harford County Examiner reported similarly concerning cyber bullying
statistics:

 Around half of teens have been the victims of cyber bullying
 Only 1 in 10 teens tells a parent if they have been a cyber bully victim
 Fewer than 1 in 5 cyber bullying incidents are reported to law enforcement
 1 in 10 adolescents or teens have had embarrassing or damaging pictures
taken of themselves without their permission, often using cell phone cameras
 About 1 in 5 teens have posted or sent sexually suggestive or nude pictures
of themselves to others
 Girls are somewhat more likely than boys to be involved in cyber bullying
e. Location-based services
Location-based services (LBS) make use of the inbuilt facilities of
mobile phones to provide content and services based on geographical
location. Recently launched services such as Facebook Places, Foursquare
and Google Latitude allow people to broadcast their locations to friends, often
with a gaming element to encourage people to ‗check in' or upload location-
tagged photos. Concerns therefore relate to privacy and contact, especially
with the ability to pinpoint the exact location of a participating young person at
any given time.
f. Late-night texting
One of the key attractions of mobile phones is the benefit of being
‗always on' and always contactable. However this can mean that some mobile
phone users literally never switch off. Persistent late-night texting can lead to
extreme tiredness, lack of concentration and an inability to function in normal
day-to-day activities. For children and young people, this can have a
significant impact on schooling.
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g. Mobile phone theft/crime
Expensive mobile phone handsets are desirable items, and so
unfortunately are at risk from theft. Children and young people may be
particularly vulnerable to such crime.
h. The mobile wallet
A recent trend has been the ability to use your mobile phone to make
payments in shops though the use of NFC (Near Field Communication) chips.
It is important that we realize that in the future our mobile phone will not only
be our communication device, camera and internet browser - it will also be our
wallet and one of the main ways that we pay for things.It is for this reason that
we need to make sure that we include financial literacy in any responsible use
messages that we pass on to children and young people.
 Economic aspects of using mobile phone in the
world
Every day we are moving closer to having almost as many mobile-
cellular subscriptions as people on earth. This is exciting news. The mobile
revolution is m-powering people in developing countries by delivering ICT
applications in education, health, government, banking, environment and
business. Let us all celebrate this mobile miracle that I have no doubt will
hasten our pace towards sustainable development.‖
 Increase in mobile subscription:
According to ITU report 2013 “6.8 billion mobile-
cellular subscriptions”
In 2013, there are almost as many mobile-cellular subscriptions as
people in the world, with more than half in the Asia-Pacific region (3.5 billion
out of 6.8 billion total subscriptions).

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As global mobile-cellular penetration approaches 100% and market
saturation is reached, growth rates have fallen to their lowest levels in both
developed and developing countries.
Mobile-cellular penetration rates stand at 96% globally; 128% in
developed countries; and 89% in developing countries.
Mobile-Cellular Subscription Growth Rates, 2005-2013
The growth rate of mobile subscription was maximum in 2005 but now
it has decreased because maximum people have accessed mobile technology

 Economic aspects of mobile phones in Pakistan
Cellular mobile services in Pakistan commenced in 90s when two cellular
mobile telephone licenses were awarded to Paktel and Pak Com (Instaphone) for
provision of cellular mobile telephony in Pakistan. Currently there are six cellular
players in the market. There has been a tremendous growth in Cellular market.
By the end of 2007 cellular mobile services were available in 7011 cities/towns
and villages.
LDI segment witnessed blooming health during 2007 wherein telecom
consumers enjoyed cheap international dialing. Deregulation process of the
telecommunication sector of AJK and NAs that was finalized in 2006-07 resulted
in the award of licenses to five existing cellular operators.
The total teledensity crossed 71.7 percent at the end of june 2012 and
telecom revenues reached 411 billion showing a growth of 11 percent
 Impact of Deregulation of telecom sector on
Economy of Pakistan
Telecom sector is one of the most potential sectors that remained
important contributor to the national economy by depositing Rs 363 billion
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during the year 2012 and showed increase of 5.4 percent compared to last
year.
 Foreign Direct Investment (FDI)
Foreign Direct Investment is considered an important source of
economic growth in this globalized world. PTA has created a conducive
and investor friendly environment in the telecom sector by awarding
licenses in a fair and transparent manner. From 2001 to 2011 Pakistan
telecom sector has attracted good FDI but in 2012 the FDI in reduced due
to saturation in market and aou country‘s economic conditions

Maximum FDI investment is made in mobile phones eg nokia Samsung etc



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 Employment in Telecom Sector
The telecommunication sector in Pakistan has undergone considerable
transformations following the award of two new mobile licenses, FLL & WLL
licenses and privatization of PTCL, the incumbent. Stiff competition among
operators to grab the market share has compelled operators to roll out their
infrastructure rapidly, which has created huge employment opportunities
(direct and indirect). The telecom sector has vast linkages with all other
sectors where it is producing large employment opportunities such as civil
work for installation of towers, support service providers, SIM and handset
retailers etc.
Deloitte has estimated that so far about 212,000 employment
opportunities have been generated countrywide by the mobile sector only. A
study conducted by TEACH has estimated that Cellular
Mobile sector has generated about 743,025 employment opportunities
which include direct, indirect and induced employment in linked sectors of the
economy 260,000 employment opportunities have been generated by other
segments of telecom sector including WLL,LDI and card payphones.
 Taxes on Telecom Sector
Telecom sector is a major contributor in generating revenues for the
Government in the form of taxes, duties and regulatory charges. To generate
adequate level of revenues government is undergoing large tax reforms which
include broad based tax policy and tax administrative reforms which aimed to
reduce indirect taxes that are considered regressive taxes.



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During 2011-12, total revenue collected by the Government in the form
of taxes and Regulatory fee from telecom sector is 132.54 billion. The
increase in these government revenues are attributed to increased teledensity
and increase in the usage of telephony for voice & data

 Increase in Telecom Imports
.
During FY 2012, total telecom imports in the country reached US$ 954
milion showing a sharp rise of 24.5 % over the previous year. This increase in
total telecom imports is due to the imports of cellular mobile phones which
have reaches us$ 465.3 in FY2012 as compared to 218 million in FY2011,
registering a growth of 113 %
Government of Pakistan is offering incentives to manufacturers of
telecom network and CPE equipment to consider manufacturing of cellular
mobile handsets and other CPE in Pakistan where cheap skilled and unskilled
labor is available along with a huge population base for consumption.
According to an estimate cellular mobile companies have access to only 61%
of the target market in Pakistan and they can still access the remaining 39%.

 Economic Effects On Indian Economy On Cell
Phones
Over the last few decades, the Indian economy has witnessed a significant
transformation. From being primarily an agricultural economy, the services sector
has overtaken and has become the leading contributor to growth. Within the
services sector, the communication sector has grown at an astonishing 25.7%
from 2000-01 to 2008-09. Even during the financial crisis years of 2008-09, while
other sectors slowed down, the communication sector continued its forward
march. While communication sector comprises of many verticals, the importance
and role of telecom sub-sector and services is well-known. Rising per-capita
incomes, introduction of affordable handsets and lowest call rates have all led to
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an explosion in the subscriber base with roughly 700 million mobile subscribers
belonging to all population strata.

Longitudinal analysis established a causal relationship between higher mobile
teledensity in Indian states and higher economic growth (Kathuria et al, 2009).
Findings reveal that every 10% increase in mobile penetration rate leads to
a 1.2% increase in GDP. Furthermore, the results suggested that there are
important network effects that magnify the economic impact of mobiles on
development when the level of mobile penetration exceeds a critical mass of
around 25%. In states with penetration levels above 25%, the growth dividend is
estimated to be higher at 1.3%.

Conclusion
Mobile phones have changed how we negotiate our relationships with family,
spouses and close friends. Increased levels of mobile phone subscriptions are linked
with improvements in education, gender equality and political participation,
particularly in developing countries. They are also associated with higher economic
growth. Despite all the negative effects of using mobile phones we cannot eliminate
from our lives. Its also contributing in world‘s economy as no of mobile subscriptions
around the world has increased so much during past years. In Pakistan it has
contributed in many ways as in FDI , revenues and employment opportunities