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
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
EE fails to apologise for HUGE T-Mobile outage that hit Brits on Friday
Customer: 'Please change your name to occasionally somewhere'
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.