Feeds

Developing World must cut mobile taxes

Mobiles boost development

The essential guide to IT transformation

Governments in the developing world should cut taxes on mobile handsets to help the poorest take advantage of the technology.

So says the GSM Association, after studying the mobile-phone markets around the globe.

The GSMA survey found that in 16 of the poorest 50 countries taxes make up more than 20 per cent of the total cost of owning a mobile. In 14 countries this would mean a yearly tax burden of $40. The GSMA is promoting a $30 handset to increase mobile use in the developing world. It believes lack of mobile phones is holding back social and economic development.

Partly because of the high taxes the black market in handsets is booming. The GSMA estimates that 39 per cent of sales in the 50 countries are black market - representing $2.7bn in lost tax revenues.

The GSMA welcomed India's decision to cut taxes, which it credited with that country's fast-growing mobile use.

The London Business School analysis of the data predicted a 20 per cent increase in mobile phone penetration if all taxes were removed. The LBS believes that a ten per cent increase in mobile phone penetration pushes up annual growth by 0.6 per cent.

More details here. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Déjà vu: Virgin Media jacks up broadband prices
Screw copper phone lines, we're UNIQUE, bleats telco
NBN Co claims 96 mbps download speeds for FTTN trial
Umina trial also delivers 30 mbps uploads, but exact rig used not revealed
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
EE: STILL Blighty's best mobe network, says 'Frappucino' Moore
Fresh round of network stats fisticuffs possibly on the cards here
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
ROAD TRIP! An FCC road trip – Leahy demands net neutrality debate across US
You crashed watchdog's site, now time to crash its ears
Google's so smart it's discovered SHARKS HAVE TEETH
Congratulations, world media, for rediscovering submarine cable armour
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?