Introduction and literature review

Over the past 10 years, mobile telephone and internet penetration had a dramatic increase over fixed lines. You would wonder why? But this change helped many countries to increase their economy. Decrease in fixed telephone is particularly connected with the increase in economy on developing countries. Technology plays a great role in economy.

(World-bank, 2017)
In 2009 the sub-Saharan Africa was responsible to have a 42% usage of fixed telephones. This was a very high rate where it was above Egypt and Arab Republics, Morocco and South Africa. (World-bank, 2017)

While other countries were rising in economy and mobile penetration. The sub-Saharan Africa was still with a high percentage of usage of fixed telephone usage.

The sub-Saharan Africa telephone usage.
The sub-Saharan countries were responsible for 42% of usage of fixed telephone (World-bank, 2017), rise incredibly in the 7 next years. From a deep research on sub-Saharan countries such as Mauritius, Kenya, Rwanda, South Sudan, Tanzania, Uganda, Zambia and Zimbabwe on the changing rate of fixed telephone; there was a booming change on them.

Analysis

The graph below shows the total number of fixed phone users in the sub-Saharan from 2009 to 2015.

All the sub-Saharan countries were responsible to have fixed telephone subscription above 500 000 subscriptions except Eritrea. Form me Kenya was the ideal one to be based on and make my research as well as analysis.

Motivation: Why Kenya?

From 2009, Kenya was responsible to a decrease of mobile subscription from 664, 099 to 85 496 users. Kenya has a great decrease number of fixed phone subscribers and is forecast to extinct by 2018. Kenya is a fast-growing economy with annual rate of 6%

Mobile phone subscriptions vs Fixed telephone subscription.
From 2009, mobile subscribers in Kenya increase from 19 million to around 38 million. The users were 1.94 times than in 2009. The dramatic change is a result of how easy using mobile is easy.

The mobile telephones use radio waves to transmit calls. A landline or FIXED telephone has a wired connection that connects it to the telecommunications network and uses wired telephone lines to transmit calls. (TalkUSA, 2015)

Research

According Geoff Rilley in his 2013 research, he says: “Mobile technologies contribute significantly to GDP growth, with a forecast range of between 1.8% in the UK and 24.9% in Egypt over the years 2010–2020, compared with today’s GDP.

Again, the effects will be larger in developing countries.” (Riley, G. (2017).

ANALYSIS

Explanation and analysis on Egypt
If Egypt was able to have an increase of GDP due to increase in mobile technologies, it is obvious that Kenya Mobile penetration impacted the economic growth of Kenya. From the above figure Egypt mobile technologies were able to contribute to 24% of the economy of Egypt.

Kenya the next Egypt

( World-bank, 2017)

Deep analysis on impact of mobile technologies on the economy.

Increase and usage of mobiles telephone enable new services and applications that provide opportunities to generate income. Communication is encouraged due to presence of mobile telephone and this help productivity to be easy. Mobile is the easiest way to talk and help us communicate quickly. In Kenya, Mobile impacted in new services like M-pesa and M-Shwari. M-pesa is the world’s most developed biggest mobile payment system.

Safaricom’s latest product M-Shwari is a revolutionary new banking product for M-PESA customers that allows you to save and borrow money through your phone while earning you interest on money saved. (Softkenya, 2017)

Nowadays mobile penetration is the new way of Baking as you can lend and borrow money.

Recommendation

From the above analysis, I found that mobile technologies in Kenya and Egypt played a great role in economic growth.

I would recommend these countries in the figure, to improve on their mobile usage as it increases the economy.

Limitations

The data on change on mobile usage services such as mobile money were very Limitless, so I didn’t get data, information and articles.

REFERENCEs
Riley, G. (2017). The Exam Performance Specialists | tutor2u Economics. [online] tutor2u. Available at: https://www.tutor2u.net/economics/blog/mobile-phones-the-impact-on-the-economy-society-and-our-personal-lives [Accessed 16 Dec. 2017].

Softkenya.com. (2017). Mobile Phone Companies and Service Providers in Kenya. [online] Available at: https://softkenya.com/kenya/mobile-phone-service-providers-in-kenya/ [Accessed 15 Dec. 2017].

TalkUSA, P. (2015). Landline vs. Cell Phone: Which One Do You Need? [online] Pure TalkUSA Blog. Available at: https://www.puretalkusa.com/blog/is-it-time-to-get-rid-of-your-landline-phone/ [Accessed 15 Dec. 2017].